SOURCE: Longreach Oil & Gas Limited

November 29, 2011 02:00 ET

Longreach Oil & Gas Limited announces Q3 Results

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


29 November, 2011



                   LONGREACH OIL AND GAS LIMITED

                              Q3 Results

LONGREACH OIL AND GAS LIMITED (TSX-V: LOI), an oil & gas company
focused on Morocco, is pleased to announce its financial and operating
results for the three month period ended September 30, 2011.

Highlights

Operational:

* Completion of the Sidi Moktar farm in for a 50% interest and
  operatorship - providing potential for near term production and
  cashflow

* Completion of a 608km 2D seismic acquisition on Tarfaya licence

* Commenced 2D seismic programme on Zag licence

* Reprocessing of 2D and 3D seismic on Foum Draa and Sidi Moussa
licences now complete

Financial / Management:

* Cash of CND$11.8m (CND$5.2m Dec 2010) - fully funded for current
  work programmes

* Working capital of CND$9.9m (CND$3.2m Dec 2010)

* Successful equity placing in Jul 2011, raising CND$10.1m

* Appointed Jonathan Morley-Kirk as CFO and an Executive Director


Commenting, Bryan Benitz, Chairman and CEO of Longreach, said:"Raising the
funds needed and subsequently completing the farm-in to
the Sidi Moktar blocks will be transformational for the Company. It
presents us with the opportunity for near term production and cashflow,
as well as significant additional upside. Elsewhere, the Company has
also made solid progress; moving operational programmes forward on all
its licence interests. Longreach remains well funded and we look
forward to making further progress for the remainder of 2011 and into
2012."

For Further Information:

Longreach

Bryan Benitz            Chairman & CEO               +44 20 3137 7756

Pelham Bell Pottinger

Mark Antelme / Philip Dennis / Rollo Crichton-Stuart +44 207 861 3232




Results Statement

Longreach ended the quarter in a strong financial position with cash of
$11.8 million and working capital of $9.9 million as compared to cash
of $5.2 million and working capital of $3.5 million at December 31,
2010. The Company's liquidity and capital resource position improved
since year end primarily as the result of an equity placing that closed
on 29th July 2011 raising $10.1m

Operational Update

Sidi Moktar

On 19th September 2011, the previously announced Sidi Moktar farm in
was formally signed by all parties. Longreach has acquired a 50%
operating interest in the onshore Sidi Moktar exploration licences
located in the Essaouira Basin in Central Morocco.

Sidi Moktar comprises of 3 blocks totalling 4,711 square kilometres.
The blocks surround the producing Meskala field. According to
historical information available from ONHYM, 4 fields within Sidi
Moktar have successfully produced 30.5 Bcf of gas from Jurassic aged
reservoirs. Principal targets are the Silurian sourced Triassic
targets, proven by the neighbouring producing Meskala field. Resource
estimates for Triassic targets, independently assessed by AJM Petroleum
Consultants, are 292 Bcf (Mean Estimate) and 776 Bcf (High Estimate).

The licence has a significant amount of historical exploration data
available to Longreach, including 6,172km2 of 2D Seismic and 40
exploration & development wells. Longreach has begun data loading and
data interpretation and will complete a prospect high grading
evaluation by year end which will identify a suitable location to shoot
a 100km2 3D seismic programme.

Other licences

The Tarfaya 2D seismic programme was completed on 23rd September. In
total 608 line kilometres was acquired, on time and within budget and
beyond the minimum license requirement of 500km. The project focused
on infill seismic over the existing J North prospect. Processing of
the seismic is now underway. The Tarfaya Licence is located onshore
Morocco and the Company holds a 30% gross working interest.

The Zag 2D seismic programme has now commenced, where a minimum of 600
line kilometres will be acquired. The Zag licence is located onshore in
the westernmost extension of the North African Paleozoic basin. The
Company holds a 30% gross working interest in the licence.

Geological and geophysical work is nearing completion on the Foum Draa
and Sidi Moussa offshore licences. On Sidi Moussa reprocessing of
2000km of 2D seismic has been completed, with interpretation nearing
completion. On Foum Draa 1500km2 of 3D seismic has been reprocessed
with completion of technical work expected by year end. 33 leads and
prospects have been identified. The Foum Draa and Sidi Moussa licences
are located offshore. The Company holds a 10% gross working interest in
each licence.

Outlook

The Company has made solid progress on all of its licence interests in
the first half of the year. With the completion of the Sidi Moktar farm
in and fund raising, we remain well positioned to make further progress
during the remainder of this year and into 2012.

Additional information on Longreach Oil and Gas Limited can be found at
 www.longreachoilandgas.com  or through Longreach's investor relations
agent.



Additional information on Longreach Oil and Gas Limited can also be
found at  www.sedar.com 



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 use of proceeds from
the Offering, the completion of the Offering, the completion of the
Farm-in agreement, the performance characteristics of the Company's oil
and gas properties, capital expenditure programs, 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 political risk; 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 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.



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

END

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