San Leon Energy notes this morning's announcement from Longreach Oil & Gas Ltd, updating on the independently evaluated resource estimates for the Foum Draa and Sidi Moussa licences, offshore Morocco, by Netherland, Sewell & Associates Inc. San Leon owns a 42.5% net operated interest in these licences.
The full announcement by Longreach stated the following:
Prospective Resources Estimates
Longreach is pleased to announce prospective resource estimates for offshore licences Foum Draa and Sidi Moussa, independently evaluated for the Company by Netherland, Sewell & Associates Inc. (NSAI), in accordance with NI 51-101 disclosure requirements.
NSAI have estimated unrisked prospective resources, as of 31st December 2011 for 14 identified prospects and 8 additional leads located in the Foum Draa and Sidi Moussa licences, offshore Morocco. The prospects are Triassic to Paleocene in age and there are a variety of trapping mechanisms such as tilted fault blocks, stratigraphic pinch outs and salt related traps over and against salt diapir flanks. The reservoir rock types are mainly sandstones, but there is also a shelf edge Jurassic carbonate play.
Unrisked prospective resources have been estimated as follows:
Unrisked prospective resources are the arithmetic sum of multiple probability distributions. Longreach owns a 7.5% interest in these prospects and leads. A copy of NSAI's report has been filed on SEDAR.
A dataroom to attract industry partners ahead of commencing a drill campaign was opened on 22nd February and will remain open until 4th May 2012. 18th May has been set as a date for receiving note of Interests from prospective farminees, with final bids to be received by 15th June 2012.
Commenting, Bryan Benitz, Chairman and CEO of Longreach, said:
"Management believes that these unrisked prospective resource estimates reinforce the excellent work that Technical Operators, Serica Energy have done on these licences over the past two years and demonstrate the significant potential these licences have. The largest identified prospect, Apricot, is a stratigraphic pinch out play concept with dual target potential. NSAI's report states the best estimate of unrisked prospective resources to be 584 MMbbls and 350 Bcf for this dual target prospect, which management believes is significant in its own right.
The dataroom has already attracted significant interest and we look forward to concluding this process in June."
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