Longreach Oil & Gas - Q2 Results

JERSEY, CHANNEL ISLANDS--(Marketwire - Aug 30, 2011) -

30 August, 2011

                     LONGREACH OIL AND GAS LIMITED

                          Q2 Results



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

Highlights:

- Farm-in for a 50% working interest and operatorship of the
highly prospective onshore Sidi Moktar licences - Sidi Moktar West,
South and North

- Commenced acquisition of 600km of 2D seismic on the onshore
Tarfaya licence - currently 80% complete. Processing and
interpretation ongoing simultaneously

- Successfully raised C$10.1m in June 2011 in support of the
Company's current work programmes and the acquisition of the Sidi
Moktar licence

Commenting, Bryan Benitz, Chairman and CEO of Longreach, said:
"We are delighted with the farm-in to the Sidi Moktar licences for a
50% interest and operatorship. We believe these licences are highly
prospective and that gaining them represents a game changing event for
the Company. The licences provide us with the opportunity of near term
production and are the Company's first operated assets in Morocco. In
support of the Sidi Moktar deal we successfully raised just over C$10m
in July. These funds leave the Company well financed to complete its
current work programmes.

Along with the new licence acquisitions, Longreach now holds a
considerable land position in Morocco, accounting for what the Company
believes to be over 15% of the countries licenced areas. We believe
these assets are highly prospective, with numerous prospects already
identified on trend with existing discoveries. With the acquisition of
the Sidi Moktar licences, we have achieved a more balanced portfolio of
what we believe to be potential near term production as well as
potentially high impact exploration.

As the second largest importer of hydrocarbons in the whole of Africa
domestic discoveries in Morocco will not be stranded."

Introduction:

Longreach's main focus in the second quarter of 2011 was the announced
farm in of a 50% interest in the Sidi Moktar licence followed by a
successful fundraising of C$10.1million.

Operational Update:

On May 26, 2011, Longreach announced that it had entered into a Farm-in
Agreement with Maghreb Petroleum Exploration S.A. ("MPE") to acquire a
50% interest in the onshore Sidi Moktar exploration licences; referred
to as Sidi Moktar West, Sidi Moktar South and Sidi Moktar North located
in the Essaouira Basin in Central Morocco. Under the Farm-in Agreement
the Company will also become operator of the Sidi Moktar exploration
licences. The Company believes that the completion of the Farm-in
Agreement will be transformational for Longreach, adding to its
existing Morocco-focused asset portfolio and giving the Company
operatorship of what it believes to be highly prospective licences. The
terms of the agreement include the acquisition of 100Km2 of 3D seismic
and the drilling of 2 wells.

According to ONHYM (Office National des Hydrocarbures et des Mines of
Morocco), the Sidi Moktar licences have to date produced 30.5Bcf of
gas. Independent petroleum consultants, AJM, based in Calgary, have
attributed undiscovered gas initially in place of up to 776 Bcf (high
estimate), 292 Bcf (best estimate) and 112 Bcf (low estimate).
Existing pipeline infrastructure runs through the licences, connecting
them to the phosphate mines in the north of Morocco, where strong
demand for natural gas exists.

Work has been progressing on the 2D seismic acquisition on the onshore
Tarfaya licence. This is now approximately 80% complete. The method of
seismic acquisition used had allowed much of the processing of the data
acquired to take place concurrently with the data acquisition and as
such we are already in a position to outline an effective work
programme going forward. The aim of the planned programme is to provide
600km of infill 2D seismic over the most prospective leads, which have
estimated prospective resources of approximately 8.9 MMbbls (low
estimate), 156.8 MMbbls (best estimate) and 3,227 MMbbls (high
estimate) (gross). The Company holds a 30% interest in the licence.

The reprocessing of 1,500km2 of 3D seismic data on the Foum Draa
licence and 2,000km of 2D seismic data on the Sidi Moussa licence is
ongoing and remains on schedule to be completed in the current quarter.
On completion, the Company's partners in these licences, are expected
to seek farm-in partners for drilling. To date 33 leads have been
identified on the Foum Draa and Sidi Moussa licences, 9 of which have
been estimated to have an aggregate 896 MMbbls of gross prospective
resources. The Foum Draa and Sidi Moussa licences are located offshore
and the Company holds a 10% working gross interest in each licence.

Financials:

At the period end, the Company had positive working capital of
approximately C$2.17million. Subsequent to the period end, Longreach
successfully raised a further C$10.1million, leaving it well funded to
meet its current seismic commitments.

The C$10.1 million fundraising was achieved through the offering of
9,650,442 units of the Company at a price of $1.05 per unit. Each unit
was comprised of one ordinary share of the Company and one ordinary
share purchase warrant. Each warrant entitles its holder to purchase
one ordinary share at an exercise price of C$1.25 for a period of 18
months from the closing of the offering. 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 and
West licences in Central Morocco.

Outlook:

On completion of the Sidi Moktar acquisition, Longreach will move into
an even stronger position in Morocco, with solid work programmes that
are well funded on its original 4 licences and for operatorship on Sidi
Moktar. A work programme for seismic acquisition will begin shortly on
Sidi Moktar and the Company looks forward to the further development of
all of its assets in line with our outlined work programmes.

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

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