CALGARY, Alberta, October 22, 2014 /PRNewswire/ --
PetroMaroc Corporation plc (TSXV: PMA) ("PetroMaroc" or the "Company") is pleased to announce that GLJ Petroleum Consultants ("GLJ"), a premier oil and gas resource consulting firm headquartered in Calgary, has completed an independent evaluation of the Undiscovered Petroleum Initially in Place (UPIIP) and prospective resources of the Kechoula structure located in the Sidi Moktar Exploration License, Morocco, incorporating the technical information obtained from the Koba-1 and Kamar-1 wells, which were drilled in 2013 and 2014.
GLJ's evaluation report will be available as soon as it has been received, however GLJ has given PetroMaroc permission to report the main conclusions to shareholders and the general public.
Highlights of the GLJ Report include:
- Confirmation of PetroMaroc's Geological and Geophysical model for the Lower Liassic reservoir for the Kechoula structure.
- Confirmation (81 percent probability "Pg") that the Lower Liassic clastic reservoir is filled to spill point.
- Incorporation of the recently received sidewall core analyses of the Lower Liassic reservoir intersected in the Kamar well showing reservoir properties and visual porosities of 13 to 20 percent.
- Confirmation of significant natural gas potential in the Kechoula structure indicating the economic potential of our Sidi Moktar license.
"We are very pleased with the result of this evaluation because it independently confirms that PetroMaroc has encountered a significant accumulation of natural gas on the company's Sidi Moktar exploration license in Morocco. We will now move ahead with plans for an appraisal and delineation program aimed at proving the commerciality of this asset," stated Tom Feuchtwanger, PetroMaroc's President and CEO.
The results of this resource evaluation are shown in the Tables below:
Summary of Undiscovered Petroleum in Place (UPIIP) Prospective Resources for the Lower Liassic
Gross Lease Prospect Gross Lease Unrisked UPIIP (BCF) Pg Partially Risked UPIIP (BCF) Low Est Best Est Mean High Est Low Est Best Est Mean High Est Liassic 85.4 293.4 393.7 835.4 0.81 69.2 237.7 318.9 676.7
Summary of Geological Risks (Pg) Lower Liassic
Source Maturity Migration Reservoir Trap Timing Seal Pg 1.00 1.00 1.00 0.90 1.00 1.00 0.90 0.81
Prospective Resources for the Lower Liassic
Gross Lease Unrisked Gross Lease Partially Risked Prospective Gas Resources Prospective Gas Resources Prospect (BCF-Sales) (BCF-Sales) Low Est Best Est Mean High Est Low Est Best Est Mean High Est Liassic 44.90 156.0 215.5 462.3 36.40 126.4 174.6 374.4
Gross Lease Unrisked Gross Lease Partially Risked Prospect Prospective NGL Resources (MMSTB) Prospective NGL Resources(MMSTB) Low Est Best Est Mean High Est Low Est Best Est Mean High Est Liassic 1.39 5.7 8.2 17.94 1.13 4.62 6.65 14.53
Gross Lease Unrisked Gross Lease Partially Risked Prospect Prospective Resources (MMBOE) Prospective Resources (MMBOE) Low Est Best Est Mean High Est Low Est Best Est Mean High Est Liassic 8.9 31.7 44.1 95.0 7.2 25.7 35.7 76.9
The GLJ UPIIP assessments were prepared in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") and National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities" ("NI 51-101").
UPIIP (equivalent to undiscovered resources) is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of undiscovered petroleum initially in place is referred to as "prospective resources," the remainder as "unrecoverable." Undiscovered resources carry discovery risk. There is no certainty that any portion of the UPIIP disclosed in this press release will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the UPIIP disclosed in this press release. A recovery project cannot be defined for this volume of UPIIP at this time. The UPIIP estimates contained herein have been risked for the chance of discovery but have not been risked for the chance of development and hence are considered partially risked estimates.
Low Estimate is considered to be a conservative estimate of the quantity of Gas Initially In Place. It is likely that the actual Gas Initially In Place will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the actual Gas Initially In Place will equal or exceed the low estimate.
Best Estimate is considered to be the best estimate of the quantity of Gas Initially In Place. It is equally likely that the actual Gas Initially In Place will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the actual Gas Initially In Place will equal or exceed the best estimate.
High Estimate is considered to be an optimistic estimate of the quantity of Gas Initially In Place. It is unlikely that the actual Gas Initially In Place will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the actual Gas In Place will equal or exceed the high estimate.
Mean estimate is the arithmetic average from the probabilistic assessment.
There are numerous uncertainties inherent in estimating quantities of UPIIP, including many factors beyond the Company's control. The UPIIP information set forth herein represents an estimate only. Due to the uncertainty as to how the play will be developed and the lack of definition of a recovery project for the UPIIP at this time, the UPIIP estimates disclosed herein are the most specific assignable category that can be provided at this time.
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 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.
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 press release contains forward-looking information within the meaning of applicable securities laws and is based on the expectations, estimates and projections of management of PetroMaroc as of the date of this news release unless otherwise stated. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information. In particular, all statements related to UPIIP, as a category of resources, are deemed to be forward-looking information and are based upon the independent evaluation of GLJ. Statements related to UPIIP involve the implied assessment, based on certain estimates and assumptions about the characteristics of the resources described. Readers are also cautioned that estimates of UPIIP are not necessarily indicative of ultimate recovery. In respect of the forward-looking information, PetroMaroc has provided such in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the timing and drilling of wells and the Company's ability to meet its operational commitments and expectations and assumptions concerning, among other things: commodity prices and interest and foreign exchange rates; capital efficiencies and cost-savings; applicable tax laws; the sufficiency of budgeted capital expenditures in carrying out planned activities; and the availability and cost of labour and services. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release.
Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the industries in which PetroMaroc operates in general such as the inherent risks involved in the exploration of development of oil and gas properties; the uncertainties involved in interpreting geological data; operational and exploration risks; delays or changes in plans with respect to growth projects or capital expenditures; delays in obtaining or the failure to obtain governmental approvals, permits or financing or political risks in the completion of development or construction activities; access to drilling rigs, completion equipment, seismic equipment and operational personnel; costs and expenses; political risks; risks of litigation; title disputes; health, safety and environmental risks; commodity price, interest rate and exchange rate fluctuations; environmental risks; competition; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws and environmental regulations. Specifically, there is a risk that the UPIIP estimates in the report prepared by GLJ prove not to be accurate as estimates by their very nature are uncertain.
The failure of the Company to achieve results in the manner described in this press release, or at all, could have a material adverse impact on the Company and on the value of the Company's securities.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on other factors that could affect the operations or financial results of PetroMaroc are included in reports on file with applicable securities regulatory authorities, including but not limited to; PetroMaroc's Annual Information Form for the year ended December 31, 2013, which may be accessed on PetroMaroc's SEDAR profile at http://www.sedar.com.
The forward-looking information contained in this press release is made as of the date hereof and PetroMaroc undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Tom Feuchtwanger, President and Chief Executive Officer, Tel: +1-403-474-2775; Martin Arch, Chief Financial Officer and Secretary, Tel: +44-203-137-7756
SOURCE PetroMaroc Corporation plc