CALGARY, Alberta, August 29, 2014 /PRNewswire/ --
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 http://www.petromaroc.co or under the
Company's profile on SEDAR at http://www.sedar.com.
Highlights
Financial:
- 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.
Operations Summary:
- 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.
About PetroMaroc
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".
Additional information about the Company can be found at
http://www.petromaroc.co and under the Company's SEDAR profile at
http://www.sedar.com.
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.
For further information:
Martin Arch
Chief Financial Officer and Secretary
Tel: +44-203-137-7756
SOURCE PetroMaroc Corporation plc
