Longreach's First Quarter Natural Gas Drilling Sets the Foundation for Promising 2014 Exploration Work in Morocco

    Longreach's First Quarter Natural Gas Drilling Sets the Foundation for
                  Promising 2014 Exploration Work in Morocco

  PR Newswire

  SAINT HELIER, Jersey, May 30, 2014

SAINT HELIER, Jersey, May 30, 2014 /PRNewswire/ --

Exploration programme and funding plans continue to advance Q1 2014 results
published

During the first quarter of 2014, LONGREACH OIL AND GAS LIMITED (TSXV: LOI)
(the Company or Longreach) outlined detailed results of its first exploration
well in Morocco, Koba-1, and commenced drilling of its second exploration
well, Kamar-1, which subsequent to the quarter-end encountered two prospective
natural gas zones in the Sidi Moktar licence in the Essaouira Basin of the
North African nation.

"Our first two exploration wells captured extensive geological and
petrophysical information that has helped define the presence of natural gas
in the targeted Lower Liassic formation and the Lower Dogger/Upper Liassic
formations. These promising results that have set the foundation for the
planning we currently have underway to continue our exploration work in 2014.
We ended the first quarter with cash of US$3.2 million. Subsequent to quarter
end, in April 2014, we completed a private placement that raised CAD$9.7
million, which permitted the Company to continue with its contracted drilling
activities of the Kamar-1 well. We continue to evaluate the results of our
first two wells - Koba-1, drilled in late 2013, and Kamar-1 completed in May
2014. We are commencing discussions with investors to obtain further financing
of additional exploration work in 2014," said Dennis Sharp, Longreach's
Executive Chairman.

Longreach today filed its financial statements for the quarter ended March 31,
2014, together with its Management's Discussion and Analysis in respect of the
Company's financial results for the quarter ended March 31, 2014. These
documents are available on the Longreach website at
http://www.longreachoilandgas.com or under the Company's profile on SEDAR at
http://www.sedar.com .

Highlights 

Financial:

  *Cash position as at March 31, 2014, of US$3.2 million (US$12.7 million as
    at December 31, 2013)
  *Working capital deficit as at March 31, 2014, of US$2.8 million (US$3.9
    million working capital surplus as at December 31, 2013)
  *Subsequent to the quarter-end, completed an interim debenture financing of
    CAD$9.7 million in April 2014 and intends to obtain further financing in
    2014, which may include a rights offering or private placement

Operations Summary:

  *Sidi Moktar:

       *On March 20, 2014, the Company commenced drilling of the Kamar-1
         well, targeting a Lower Liassic reservoir and Triassic clastic
         reservoirs. Subsequent to the quarter-end, the Kamar-1 well was
         drilled to a final total depth of 2,790 metres and intersected two
         distinct gas-bearing intervals. One is in the targeted Lower Liassic
         natural gas zone and has a gross interval of 110 metres as defined by
         petrophysical, wireline logs. The other is defined by the presence of
         significant natural gas volumes in the drilling mud within the Lower
         Dogger/Upper Liassic zone, which occurs over a gross interval of
         approximately 100 metres
       *Following the Kamar-1 well, the Company will review the forward
         operational programme.

  *Sidi Moussa Offshore:

       *Longreach has been advised that the operator, Genel Energy plc
         (Genel), has secured a rig to drill an exploration well targeting the
         Mid-Jurassic and Lower Triassic reservoirs in the third quarter of
         2014. Longreach holds a 1.5 percent working interest in this
         exploration block.

About Longreach Longreach is an independent Canadian oil and gas company
focused on its significant land position in Morocco. The Company has a 50
percent operated interest in the Sidi Moktar licence 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 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 Karmar-1 well at the Company's
operated Sidi Moktar onshore license area in Morocco; the ability of the
Company to successfully complete the drilling programme at Kamar-1 over the
next few weeks; the completion of evaluations and processing and
interpretation of data, the performance characteristics of the Company's oil
and gas properties, capital expenditure programmes, 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; completing the proposed drilling programme at Kamar-1 in a
timely and fiscally prudent manner; 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 successfully complete the drilling programme at
Kamar-1 and to successfully evaluate, process and interpret data. 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:
+44-203-137-7756
 
Press spacebar to pause and continue. Press esc to stop.