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 
Exploration programme and funding plans continue to advance Q1 2014 results 
SAINT HELIER, Jersey, May 30, 2014 /CNW/ - 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 www.longreachoilandgas.com 
or under the Company's profile on SEDAR at www.sedar.com. 

        --  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,
        --  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:
      o 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
      o Following the Kamar-1 well, the Company will review the forward
        operational programme.
        --  Sidi Moussa Offshore:
      o 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 
www.longreachoilandgas.com and under the Company's SEDAR profile at 

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.

SOURCE  Longreach Oil and Gas Limited 
Martin Arch Chief Financial Officer and Secretary Tel: +44 203 137 7756 
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