Longreach Oil and Gas Limited Notifies Contractor to Mobilize Rig for Kamar Well at Sidi Moktar and Announces Proposed Interim

 Longreach Oil and Gas Limited Notifies Contractor to Mobilize Rig for Kamar
         Well at Sidi Moktar and Announces Proposed Interim Financing

  PR Newswire

  SAINT HELIER, Jersey, March 3, 2014

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.)
 
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