SOURCE: Longreach Oil & Gas Limited

July 29, 2011 12:13 ET

Closes Short Form Prospectus Offering

JERSEY, CHANNEL ISLANDS--(Marketwire - Jul 29, 2011) -

Not for distribution to U.S. news wire services or dissemination in the
United States.

29 July, 2011


Closes Short Form Prospectus Offering

LONGREACH OIL AND GAS LIMITED (TSX-V: LOI), an oil & gas company
focused on Morocco, is pleased to announce that it has closed a
$10,132,964.10 offering of 9,650,442 units of the Company ("Units") at
a price of $1.05 per Unit (the "Offering"), after filing a final short
form prospectus dated July 25, 2011 with regulatory authorities in each
of the provinces of Canada, except Quebec, Newfoundland and Labrador
and New Brunswick.

The proceeds are expected to be primarily used to fund the Company's
obligations under the percentage interests transfer agreement to
acquire a 50% interest in, and operatorship of, the Sidi Moktar South
and Sidi Moktar North licenses in Central Morocco, including the
acquisition of 100 km2 of 3D seismic data and a two well drilling

An independent resource study, completed in March 2011 by AJM Deloitte
(formerly AJM Petroleum Consultants) covering the four existing fields
within Sidi Moktar, attributed undiscovered gas initially in place of
approximately 111 (low), 292 (best) and 776 (high) BCF for Silurian
sourced Triassic targets.

Bryan Benitz, Chairman and CEO commented:"We are delighted at the success
of the offering and it is a testament
to the Company, its assets and our shareholders, that we have achieved
this, particularly in the current economic climate.

The funds allow us to proceed in securing the Sidi Moktar licenses,
which will represent a step change in the Longreach business. The
settling of the transaction is a credit to the strength of the
Company's relationships within Morocco and an indication of Longreach's
commitment to progress and develop within the country. We now embark on
an initial seismic acquisition programme on Sidi Moktar in conjunction
with the development of our other assets in Morocco."

Further Details of the Offering

Each Unit consists of one ordinary share and one ordinary share
purchase warrant of the Company (a "Warrant"). Each Warrant will
entitle its holder to purchase one ordinary share of the Company at a
price of $1.25 per share at any time before 5:00 p.m. (Toronto time) on
the date that is eighteen months following the date hereof.

The syndicate of agents was led by Paradigm Capital Inc. and included
Fraser Mackenzie Limited (collectively, the "Agents"). VSA Capital
Limited acted as Special Selling Agent in respect of sales in Europe.
The Agents received a cash fee equal to 6% of the gross proceeds raised
through the Offering. In addition, the Company has granted the Agents
579,027 broker warrants (the "Broker Warrants") exercisable until July
29, 2013 to purchase 579,027 Units at an exercise price of $1.05 per

A copy of the final prospectus is available under the Company's profile
on SEDAR at .

Notes to Editors

Longreach holds varying interests in 4 exploration licenses in southern
onshore and offshore Morocco, totalling approximately 11.8 million
acres of exploration acreage, which the Company believes to represent
approximately 15% of the country's total license area.

Additional information on Longreach Oil and Gas Limited can be found at  or through Longreach's investor relations

Additional information on Longreach Oil and Gas Limited can also be
found at 

Special Note Regarding Estimates

Volumes described above as undiscovered gas initially in place are an
arithmetic sum of multiple estimates, which statistical principles
indicate may be misleading as to volumes that may actually be
recovered. Readers should give attention to the estimates of individual
classes and appreciate the differing probabilities of recovery
associated with each. The probability associated with the high estimate
would be considered far less likely than the best estimate, and
conversely, the low estimate would be expected to be much higher than
the presented arithmetic sum.

Undiscovered gas initially in place is an undiscovered resource. There
is no certainty that any portion of the resources will be discovered.
If discovered, there is no certainty that it will be commercially
viable to produce any portion of the resources.

Special Note Regarding Forwarding Looking Statements

This press release contains forward-looking statements. These
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 with respect to the completion of the

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;
fluctuation in foreign exchange or interest rates; risks inherent in
oil and gas operations; political risk, including political risk;
geological, technical, drilling and processing problems; the need to
obtain consents and approvals from regulatory authorities and other
third-parties; stock market volatility and market valuations; and
competition for, among other things, capital.

Although the forward-looking statements contained in this press release
are based upon 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 neither the
Company nor any of the agents undertakes any obligation to publicly
update or revise any forward-looking statements except as expressly
required by applicable securities laws.

Not an offer to sell or solicitation of an offer to buy securities in
the United States

This press release is not an offer to sell or solicitation of an offer
to buy securities in the United States of America or to any US person
(as that term is defined in the U.S. Securities Act of 1933, as amended
(the "U.S. Securities Act"). The securities offered in the Offering
referred to in this press release have not been and will not be
registered under the U.S. Securities Act, or any state securities laws.
Accordingly, such securities may not be offered or sold to, or for the
account or benefit of, persons in the United States or U.S. persons.

Neither 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 information is provided by RNS
          The company news service from the London Stock Exchange


Contact Information

  • Contacts:
    Email Contact

    For Further Information:

    Longreach Oil and Gas

    Bryan Benitz
    Chairman & CEO
    +44 20 3137 7756

    Pelham Bell Pottinger

    Mark Antelme
    Philip Dennis
    Jenny Renton
    +44 207 861 3232