PetroMaroc Seeks Industry Partner to Develop Sidi Moktar
Dundee Capital Markets to help evaluate strategic and financial alternatives
CALGARY, Nov. 28, 2014 /PRNewswire/ - PetroMaroc Corporation plc (TSXV: PMA) (the Company or PetroMaroc) is pursuing a series of strategic and financial alternatives with the objective of maximising shareholder value following the independent assessment of prospective resource in the Kechoula structure on the Sidi Moktar Exploration Licence in Morocco (''Sidi Moktar'').
"We will be pursuing all available options to maximize shareholder value from our promising Kechoula structure," said Tom Feuchtwanger, PetroMaroc's President and CEO. "Our recently updated independent evaluation of the undiscovered petroleum initially-in-place and the prospective resource has defined the strong prospectivity and a path towards the commercial development of Kechoula."
The independent evaluation by GLJ Petroleum Consultants confirmed PetroMaroc's geological and geophysical model for the Lower Liassic reservoir of the Kechoula structure. The report also confirmed (81 percent probability) that the Lower Liassic clastic reservoir is filled to spill point, and reported a prospective resource of gross lease unrisked undiscovered petroleum initially-in-place of 394 billion cubic feet (mean estimate). Petrophysical analyses of the sidewall cores collected during the drilling of the Kamar well reported visual porosities of 13 to 20 percent in the Lower Liassic reservoir interval.
Dundee Capital Markets (''Dundee'') has been appointed as financial adviser to evaluate alternatives that may include, but are not limited to, farm-out of Sidi Moktar, sale of the Company, merger or other business combination, recapitalization, sale of all or a portion of the Company's assets, or any combination thereof. Dundee will also evaluate alternatives for PetroMaroc to continue its business plan, among other alternatives.
Parties who execute a confidentiality agreement will have access to an online and physical data room, as well as management and technical presentations. All interested parties should direct enquiries to Dundee at the contact information below.
PetroMaroc recently initiated a non-brokered private placement (the ''Private Placement'') to raise proceeds of a minimum of Cdn $3 million and a maximum of Cdn $6 million to support near-term efforts while the search for an industry partner is underway. PetroMaroc closed the first tranche of the Private Placement raising Cdn $3 million on November 4. The Company anticipates to close the 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'').
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.
The GLJ undiscovered petroleum initially-in-place (UPIIP) assessment was 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.
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.
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. 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. 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
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article