Q1 2013 Financial Results

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28 May 2013

LONGREACH OIL AND GAS LIMITED

Q1 2013 Results

LONGREACH OIL AND GAS LIMITED (TSX-V:  LOI), an independent oil & gas company focused on Morocco (“Longreach” or the “Company”), is pleased to announce its financial and operating results for the three month period ended March 31, 2013.

Highlights

Financial:

  • Cash position as at March 31, 2013 of US$29.8m (US$34.2m as at December 31, 2012) 
  • Working capital as at March 31, 2013 of US$29.1m (US$32.7m as at December 31, 2012) 

Operational Update:

    • Sidi Moktar: 
      • Acquisition of 520 km of new 2D seismic data was completed in February, allowing Longreach to finalise the well locations for the 2013 drilling programme over the Koba and Kamar drill prospects.  Interpretation work has begun to potentially high-grade existing  and additional leads to prospect status

 

      • Tendering for drilling services is well advanced

 

      • An updated independent assessment of the Company’s prospective resources on the Sidi Moktar licence, covering 12 prospects and leads, was released in March resulting in a significant upgrade on previous estimates

 

      • Evaluation of technical and commercial bids following an international tender process for a land rig is nearing completion

 

      • Civil works for the preparation of the well sites have begun

 

    • Foum Draa Offshore: 
      • A rig has been secured by licence operator Cairn Energy PLC, subject to  necessary approvals, to begin operations on the Foum Draa licence in H2 2013.

 

  • Sidi Moussa Offshore: 
    • Licence operator, Genel Energy plc, has signed a drilling rig contract with Noble Corporation for its African offshore drilling programme

Commenting, Andrew Benitz, CEO of Longreach, said:

“In Sidi Moktar, we continue to make solid progress on procurement and logistics for the upcoming well programme and additional exploration activities are advancing the Company‘s understanding of the licence.  We expect to make further operational updates during the current quarter.”

Outlook

Longreach expects to participate in the drilling of a number of wells this year, which range from reasonably low risk to high impact exploration.  This work programme is fully funded and if successful, has the potential to transform Longreach‘s business.

-ENDS-

For additional information, please contact:

Andrew Benitz Chief Executive Officer +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 the completion of evaluations and processing and interpretation of data, 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; 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 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 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.