CALGARY, Aug. 29, 2014 /CNW/ - During the second quarter of 2014, PETROMAROC CORPORATION PLC (TSXV: PMA) (the Company or PetroMaroc) completed drilling of its second exploration well, Kamar-1, which encountered two prospective natural gas zones in the onshore operated Sidi Moktar licence in the Essaouira Basin, Morocco.
"Our first two exploration wells - Koba-1, drilled in late 2013, and Kamar-1, completed in May 2014 - captured extensive geological and petrophysical information on the Kechoula structure. They helped define the presence of natural gas in the targeted Lower Liassic formation and the Lower Dogger/Upper Liassic formations. These promising results have set the foundation for the planning and evaluation we currently have underway to continue our appraisal work, and we are now sharpening our focus in Morocco on the Sidi Moktar licence where we hold a 50 percent operated interest. In order to capture the opportunity of our Sidi Moktar exploration, we have initiated commercial and regulatory discussions to transfer our minority interests in the Tarfaya onshore licence and the Sidi Moussa offshore licence to our partners. Our brightest geological opportunities and largest economic interests are in Sidi Moktar, and that's where we will concentrate our geological and financial resources in Morocco," said Thomas Feuchtwanger, PetroMaroc's Chief Executive Officer.
"We have a vision to become the leading hydrocarbon producer in Morocco, which has an attractive and unfulfilled market for new domestic energy supplies. We are applying disciplined, well-proven technologies and risk-management practices to create long-term value from natural gas and oil for our shareholders and the people of Morocco," Feuchtwanger said.
PetroMaroc ended the second quarter with cash of US$6.6 million and is now pursuing a series of financing initiatives with investors to raise new capital to fund current operational commitments and to fund additional evaluation of the Company's Sidi Moktar licence.
PetroMaroc today filed its financial statements and management's discussion and analysis for the quarter ended June 30, 2014. These documents are available on the PetroMaroc website at www.petromaroc.co or under the Company's profile on SEDAR at www.sedar.com.
- Cash position as at June 30, 2014, of US$6.6 million (US$3.2 million as at March 31, 2014).
- Working capital surplus as at June 30, 2014, of US$1.3 million (US$2.8 million working capital deficit as at March 31, 2014).
- Intends to obtain further near-term capital before the end of 2014 in order to meet both current and future operational commitments.
- Sidi Moktar onshore:
- The Kamar-1 well was drilled to a final total depth of 2,790 metres and intersected two distinct gas-bearing intervals. One is in the targeted Lower Liassic natural gas zone and has a gross interval of 110 metres as defined by petrophysical, wireline logs. The other is defined by the presence of significant natural gas volumes in the drilling mud within the Lower Dogger/Upper Liassic zone, which occurs over a gross interval of approximately 100 metres.
- Following the Kamar-1 well, the Company outlined plans to appraise the potential of the Sidi Moktar licence. These initiatives, highlighted in PetroMaroc's recent corporate investor presentation, are subject to successful financing, and may include:
- Testing and evaluating the existing wells and data
- Acquiring 3D seismic over the Kechoula structure
- Drilling two or three additional delineation and appraisal wells on the Kechoula structure
- Sidi Moussa offshore:
- PetroMaroc has been advised that the operator, Genel Energy plc (Genel), spudded the Nour-1 exploration well on July 30, 2014. The well, located approximately 60 kilometres off the west coast of Morocco in approximately 990 metres of water, is anticipated to take between 60 and 90 days to complete operations.
- Prior to reaching the primary target Middle Jurassic platform carbonate unit, and secondary target Upper Jurassic reefal carbonates, the Company entered formal discussions with the operator and partners to transfer its 1.5% working interest in the Sidi Moussa licence.
- Tarfaya onshore:
- During the quarter, PetroMaroc successfully transferred its 22.5% working interest to the operator of this licence. PetroMaroc will not be liable for the $1.5 million penalty previously accrued, which followed the operator's decision not to drill one exploration commitment well by April 2014. Completion of this transaction is subject to the final approval by the Ministry of Energy.
PetroMaroc is an independent oil and gas company focused on its significant land position in Morocco. The Company has a 50 percent operated interest in the Sidi Moktar licence area covering 2,683 square kilometres and is working closely with Morocco's National Office of Hydrocarbons and Mines (ONHYM) as a committed long-term partner to unlock the hydrocarbon potential of the region. Morocco offers a politically stable environment to work within and has favourable fiscal terms to energy producers. PetroMaroc is a public company listed on the TSX Venture Exchange under the symbol "PMA".
Special Note Regarding Forward Looking Statements
This press release contains forward-looking statements. Such forward-looking statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "project", "potential", "targeting", "intend", "could", "might", "continue" or the negative of these terms or other similar terms. Forward-looking statements in this press release include, but are not limited to, statements regarding the completion of evaluations and processing and interpretation of data, the performance characteristics of the Company's oil and gas properties, capital expenditure programmes, supply and demand for oil, gas and commodities, prices for oil and gas, drilling plans, and realization of the anticipated benefits of acquisitions.
Forward-looking statements are only predictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this press release include, but are not limited to: general economic conditions in Canada, the Kingdom of Morocco and globally; industry conditions, including fluctuations in the price of oil and gas, governmental regulation of the oil and gas industry, including environmental regulation; fluctuation in foreign exchange or interest rates; risks inherent in oil and gas operations; political risk, including geological, technical, drilling and processing problems; unanticipated operating events which could cause commencement of drilling and production to be delayed; the need to obtain consents and approvals from industry partners, regulatory authorities and other third-parties; stock market volatility and market valuations; competition for, among other things, capital, acquisitions of reserves, undeveloped land and skilled personnel; incorrect assessments of the value of acquisitions or resource estimates; any future inability to obtain additional funding, when required, on acceptable terms or at all; credit risk; changes in legislation; any unanticipated disputes or deficiencies related to title matters; dependence on management and key personnel; and risks associated with operating in and being part of a joint venture.
Although the forward-looking statements contained in this press release are based upon factors and assumptions which management of the Company believes to be reasonable, the Company cannot assure that actual results will be consistent with its expectations and assumptions. Undue reliance should not be placed on the forward-looking statements contained in this news release as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. These statements speak only as of the date of this press release, and the Company does not undertake any obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of PetroMaroc in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.
SOURCE: PetroMaroc Corporation plc
For further information:
Chief Financial Officer and Secretary
Tel: +44 203 137 7756