CALGARY, Nov. 27, 2014 /PRNewswire/ - In the third quarter
of 2014, PetroMaroc Corporation plc (TSXV: PMA) (the Company or
PetroMaroc) confirmed the significant natural gas potential of the
Kechoula structure in the Sidi Moktar Exploration Licence in
Morocco (''Sidi Moktar''). The
Company raised new capital for ongoing exploration and corporate
initiatives, and is seeking a partner to help develop Sidi
Moktar.
"With the receipt of an independent resource evaluation
confirming a significant accumulation of natural gas at Sidi
Moktar, we are moving ahead on the planning stages for an appraisal
and delineation program to prove the commerciality of this large,
prospective natural gas bearing structure," said Tom Feuchtwanger, PetroMaroc's President and
CEO.
"We recently completed a $3
million private placement that is supporting our near-term
efforts while we launch a broader search for an industry partner to
accelerate the development of Sidi Moktar. Our recent resource
assessment has confirmed the promising geological and commercial
potential that we believe will generate attractive partnership
opportunities," Feuchtwanger said.
PetroMaroc ended the third quarter with cash of US$4.5 million. On October
30, the Company announced a non-brokered private placement
of units of the Company at a price of Cdn $0.15 per unit to raise gross proceeds of a
minimum of Cdn $3 million and a
maximum of Cdn $6 million. PetroMaroc
closed the first tranche of the private placement raising Cdn
$3 million on November 4. The Company anticipates it will close
a second tranche of the private placement in December. The private
placement is subject to the final approval of the TSX Venture
Exchange (the ''TSX-V'').
In addition, PetroMaroc is pursuing a series of financing and
strategic initiatives. Subsequent to the quarter-end, Dundee
Securities Europe LLP was appointed as nominated adviser to make
recommendations and assist the Company in attracting an industry
partner to advance development of the Sidi Moktar licence.
PetroMaroc today filed its financial statements and management
discussion and analysis for the quarter ended September 30, 2014. These documents are available
on the PetroMaroc website at www.petromaroc.co or under the
Company profile on SEDAR at www.sedar.com.
Highlights
Financial:
- Cash position as at September 30,
2014, of US$4.5 million
(US$6.6 million as at June 30, 2014).
- Working capital deficit as at September
30, 2014, of US$0.1 million
(US$1.3 million working capital
surplus as at June 30, 2014).
- Subsequent to the quarter-end, announced an intention to
complete a non-brokered private placement at a price of Cdn
$0.15 to raise gross proceeds of a
minimum of Cdn $3 million and a
maximum of Cdn $6 million.
- Closed the first tranche of the private placement in early
November, raising gross proceeds of Cdn $3
million, which provides near-term capital required until
February 2015. The second tranche of
up to Cdn $3 million is anticipated
to close in December. Assuming completion of a full second tranche
placement of Cdn $3 million this
would provide near-term capital required until May 2015.
Operations:
- Sidi Moktar onshore:
- Following the Koba-1 and the Kamar wells, and the independent
evaluation of the Undiscovered Petroleum Initially in Place (UPIIP)
and prospective resources of the Kechoula structure, 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 will address:
- 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:
- The Company entered into formal discussions with the operator
and partners to transfer its 1.5% working interest in the Sidi
Moussa licence prior to the Nour-1 well reaching the primary target
Middle Jurassic platform carbonate unit and secondary target Upper
Jurassic reefal carbonates.
- During the quarter, the Company successfully executed a binding
letter agreement with one of the partners on the licence to
transfer its 1.5% working interest, following which, the net cost
to the Company for the Nour-1 well will be nil. This transfer of
interest remains subject to approval by the Moroccan authorities
(joint Ministerial orders).
- The Company notes the announcement by the operator and partners
on November 13, 2014 (subsequent to
the quarter-end), that the Nour-1 well is being plugged and
abandoned. This announcement will have no additional impact on the
Company.
- Foum Draa offshore:
- The joint partners on the licence are reviewing the forward
programme following the FD 11-Alpha-1 exploration well drilled in
late 2013 that successfully completed the minimum work commitments
of the First Extension Period of the exploration licence under the
Petroleum Agreement, subject to completing end of well
studies.
- The joint partners have the option to advance to the Second
Extension Period of the exploration licence, or withdraw from the
exploration licence.
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
www.petromaroc.co and under the Company's SEDAR profile at
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 recruitment of a partner to develop Sidi
Moktar, proving the commercial viability of Sidi Moktar, completion
of the second tranche of the private placement in December 2014 and receipt of the final approval
of the TSX-V, drilling additional wells of Sidi Moktar, 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