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

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

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

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 110metres 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 
www.longreachoilandgas.com  and   under  the   Company's  SEDAR   profile   at 
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.

SOURCE Longreach Oil and Gas Limited

Contact:

Martin Arch
Chief Financial Officer and Secretary
Tel: +44 203 137 7756
 
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