Executive Q&A – Independent Oil & Gas Focus


Longreach is uniquely 100% Morocco focused. At this moment in time we’ve no plans to expand: we simply want to concentrate on achieving our goals within Morocco. However, with that being said, as with any company, once one set of goals are achieved we would always be looking for the next challenge, whatever that may be.


What are the biggest challenges of operating in Morocco?


The risks are within exploration as the country remains sparsely explored. Yet this is now changing. ONHYM was set up at the turn of the century with a defining remit to attract foreign investment into domestic hydrocarbon exploration. This strategy has been highly successful, in 1997 there were only 9 exploration permits and by 2011 this number had increased to 115, with operators such as Anadarko, Kosmos and Repsol now in country.


What other E&P activities are happening in Morocco – is it attracting more widespread interest or does it, and will it, remain a somewhat niche play for a handful of independents?


Exploration is gaining momentum in Morocco. Every few weeks ONHYM announces new licence agreements with international E&P companies. It is true that so far Morocco has been a destination of choice for independent companies but the country is starting to tell the story of successful discoveries and production such as Circle Oil which is completing the construction of a gas pipeline from its Sebou licence to Kenitra in the north. Offshore Morocco is also gaining significant interest, most notably from Kosmos which has recently added two exploration licences to its existing acreage. Onshore there is growing interest in the shale gas potential of the country, with Anadarko exploring just to the north of our Zag licence and EOG Resources further north.


What next bit of news flow should we look out for from Longreach?


We are making excellent progress with the seismic interpretation on our operated Sidi Moktar licence and are working towards building a list of leads and prospects. This will be followed by new seismic acquisitions in order to rank prospects and identify possible drill targets and we expect this to be completed by mid-year. The licence is within the Essaouira basin, a proven hydrocarbon region in central Morocco, where ONHYM is currently producing gas and condensate. For our non-operated licences, on Tarfaya and Zag we have now completed 2D seismic acquisition and are busy processing this data. For the offshore licences we have now completed the G&G phase of the programme and have built an impressive resource estimate for identified prospects. The licence is probably the best explored offshore acreage in Morocco, with over 5,000km² of excellent quality 3D seismic coverage. It is drill ready so together with our partners we are opening a data room to attract interest from large oil groups; so we are confident of some very positive news flow throughout the course of this year.


Which other E&P companies do you admire and why?


I like companies that have not spread themselves too thin, have a focused regional strategy and through good technical work have advanced licences through the exploration phase to successful commercialisation.


Africa continues to have significant untapped resource potential, so junior companies with big resource potential and a clear route to development are interesting. The companies that have taken a big resource play and commercialised it, attract my admiration.


When you’re away from work, how do you enjoy spending your spare time?


I have a young family, two girls below three; so much of my spare time is spent with them. Last weekend I was building a snowman – I haven’t been able to do that since I was six years old, so having them allows me to relive all my childhood dreams without too much embarrassment!


What do you enjoy most about working in the oil and gas industry?


It’s an incredibly dynamic and exciting industry, with a full spectrum of skill sets. It’s also an industry that is often under appreciated. We are dealing with the most important commodity in the world, which accounts for c.40% of global commodity trading and supports the largest and most valuable companies in the world. And yet there is room for little companies like Longreach, who through sensible use of risk capital can build a business that fits into the industry dynamics. Exploration is not for the faint hearted but when done well the upside is without limit.


You’re on a desert island – what three luxuries have you chosen to bring? I think it would have to be my wife and two girls…and possibly another desert island!


Drillers and Dealers :::


::: February 2012 Edition


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