CALGARY, Nov. 27, 2014 /CNW/ - 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
For further information: PetroMaroc Corporation plc: Tom Feuchtwanger, President and Chief Executive Officer, Tel: +1 403 474 2775; Martin Arch, Chief Financial Officer and Secretary, Tel: +44 (0) 20 3137 7756; Dundee Securities: Nominated Adviser, Derek Smith, Tel: +44 (0) 20 3440 6885
