Longreach Oil & Gas Limited - 1st Quarter Results

JERSEY, CHANNEL ISLANDS--(Marketwire -05/22/12)-

  May 22, 2012 LONGREACH OIL AND GAS LIMITED Q1 Results LONGREACH OIL AND GAS LIMITED (LOI.V), an oil & gas company focused on Morocco ("Longreach" or the "Company"), is pleased to announce it results for the three month period ended March 31, 2012. Highlights Financial: * Cash position as at March 31, 2012 of CND$9.0m (CND$10.5m as at December 31, 2011) * Working capital as at March 31, 2012 of CND$6.8m (CND$7.4m as at December 31, 2011) Operational: * Sidi Moktar: o Longreach is in the process of completing extensive seismic reinterpretation studies to better delineate leads and prospects, incorporating the results of a pilot seismic reprocessing programme. The results will be used to determine strategy for further reprocessing and seismic acquisition parameters to further high grade leads and prospects. * Foum Draa / Sidi Moussa: o The farm-out process remains underway with a view to seeking an industry partner for the drill phase on both licences. * Tarfaya licence: o Processing and interpretation of the new 608 km 2D seismic is currently underway and nearing completion. * Zag Basin Onshore: o The shooting of 1,674 km of 2D seismic, largely on the eastern part of the licence area, was completed in January 2012. The data is currently being processed and interpretation is expected to be completed this year. Management: * Ronald Lansdell was appointed Vice President Exploration and a member of the Board of Directors of Longreach (the "Board") on May 14, 2012. * Dr Mehdi Ali was appointed as an advisor to the Board on May 14, 2012. * Today (the "Grant Date") Longreach issued 500,000 options to new and existing management and members of the Board at an exercise price of CND$0.60.     o As a result of today's option issuance, the total number of options issued and outstanding is unchanged from December 31, 2011 at 1,700,000 options, as 500,000 options were forfeited by a previous optionholder subsequent to December 31, 2011 in connection with his departure from the Company.     o The options issued today will vest in equal thirds upon the first, second and third anniversary of the Grant Date. Subject to shareholder approval of Longreach's stock option plan, these options will expire five years from the Grant Date. Commenting, Bryan Benitz, Chairman and CEO of Longreach, said:"Longreach continues to make solid progress on the extensive work programmes it has in place across all its licences in Morocco, for which it remains well funded. Looking ahead, we expect to see an acceleration in activity with further seismic work, data interpretation and the identification of drill targets. As a result, we have strengthened our management team, with Ronald Lansdell joining as Vice President Exploration, and Dr Mehdi Ali joining as an advisor to the Board. We look forward to the future with confidence." -ENDS- For Further Information: Longreach Bryan Benitz Chairman & CEO +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, including 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.     This information is provided by RNS The company news service from the London Stock Exchange END