SAINT HELIER, Jersey, March 3,
2014 /PRNewswire/ --
/NOT FOR DISTRIBUTION
TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE U.S./
LONGREACH OIL AND GAS LIMITED (TSXV: LOI) (the
"Company" or "Longreach") is pleased to announce that
it has given notice to its contractor Saipem SpA to mobilize the
Drillmec Mas 7000 rig to the Kamar well location for the purpose of
drilling a second well as a follow up to its Koba-1 well at its
operated Sidi Moktar onshore license area in Morocco.
The Company intends to complete an interim debenture financing
of between Cdn$10 - Cdn$15 million
with a number of qualified investors, the proceeds of which will be
used for the ongoing development of the Kamar well and for general
corporate purposes. It is expected that the debentures will bear
interest at a rate of 10% per annum and will mature two years from
closing and will otherwise have terms and conditions customary for
transactions of this nature. It is expected that purchasers of
debentures will also receive non-transferable bonus warrants to
purchase ordinary shares of the Company for two years from closing
(subject to adjustment) with an exercise price of at least
Cdn$0.30. Insiders may participate in
the proposed debenture financing, subject to the availability of
applicable related party transaction exemptions. The proposed
financing remains subject to execution of definitive documentation
and approval of the TSX Venture Exchange.
If the proposed financing is completed, the Company intends to
repay the debentures with the proceeds of a subsequent public or
private offering of equity securities, which may include a rights
offering to all shareholders of the Company.
About Longreach
Longreach is an independent Canadian oil and gas company focused
on its significant land position in Morocco. The Company has a 50% operated
interest in the Sidi Moktar license 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 extremely
favourable fiscal terms to energy producers. Longreach is a public
company listed on the TSX Venture Exchange under the symbol
"LOI".
Additional information about the Company can be found at
http://www.longreachoilandgas.com 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 drilling of the a second well at the
Company's operated Sidi Moktar onshore license area in Morocco; the completion of the proposed
interim debenture financing and the expected terms and conditions
thereof; the participation of insiders of the Company in such
interim financing; and a potential subsequent equity financing if
the interim financing is completed. 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;
executing the proposed interim debenture financing or potential
subsequent equity offering on terms which the Company is willing or
able to offer; 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. Material factors
and assumptions which management of the Company has considered in
connection with making the forward-looking statements in this press
release include that the Company will be able to raise adequate
proceeds and complete the interim financing on terms acceptable to
the Company and that the Company will be able to complete a
subsequent equity offering on terms acceptable to the Company.
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 Longreach 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(0)203-137-7756
march@longreachoilandgas.com
(LOI.)