Longreach Oil & Gas Limited: Q2 Interim Results

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August 15, 2012



LONGREACH OIL AND GAS LIMITED

Q2 Interim Results

LONGREACH OIL AND GAS LIMITED (LOI.V), an oil & gas company
focused on Morocco ("Longreach" or the "Company"), is pleased to
announce its results for the three month period ended June 30, 2012.

Highlights

Financial:

* Cash position as at June 30, 2012 of CND$6.9m (CND$9.0m as at
March 31, 2011)

* Working capital as at June 30, 2012 of CND$5.9m (CND$6.8m as at
March 31, 2011)

Operational:

* Sidi Moktar:

o Technical progress with identification of an inventory of prospects
and leads, which will be independently evaluated in preparation for
drilling planned for early 2013

* Foum Draa / Sidi Moussa:

o Reached agreement, subject to contract and a further announcement,
for a farm-down of the Company's interests in each of the licences with
potential for drilling two wells in 2013

* Tarfaya licence:

o Defined an extensive portfolio of leads and prospects. A further
geophysical exploration programme is underway



* Zag Basin Onshore:

o Seismic processing and interpretation is ongoing



Commenting, Bryan Benitz, Chairman and CEO of Longreach, said:"Morocco has
increasingly grabbed the attention of the oil industry and
our focused strategy is beginning to yield results. We continue to
make solid technical progress on our operated Sidi Moktar licence, with
a full inventory of prospects and leads now mapped and under resource
evaluation. A farm out agreement for each of the offshore licences is
in the concluding stages and we are improving our knowledge of the
significant prospectivity that exists in the Tarfaya and Zag onshore
licences."



Operational Update

Sidi Moktar Onshore

Following on from the completion of extensive seismic reinterpretation
studies, which incorporated the results of a successful pilot seismic
reprocessing programme, an extensive portfolio of prospects and leads
has been defined. A further program of 2D seismic processing is
underway using the techniques and technologies defined in the pilot
study and a 500 km 2D seismic acquisition program over the defined
leads and prospects is scheduled for the 4th quarter of 2012. Drilling
locations will be finalised after interpretation of the reprocessed and
new seismic datasets.

Sidi Moussa & Foum Draa Offshore

During the second quarter, Longreach and its joint venture partners
conducted a farm-out exercise led by Serica Energy plc. in respect of
both exploration permits. This generated considerable industry
interest and resulted in the receipt of farm-in proposals for the two
blocks. The Company is now in the final stage of negotiations to farm
out its interests in the blocks with completion of the negotiations
expected shortly. Applications are being made to enter the second
period of both licences which carry a commitment to drill two
exploration wells, one on each licence. The farm-in terms will be
announced once the agreements have been finalised.

Tarfaya Onshore

Based on the interpretation of the 2D seismic data acquired in 2011, an
extensive portfolio of leads and prospects has been defined. A further
geophysical exploration programme is underway to better define the
prospectivity of the licence area.

Zag Onshore

The processing of 1,674 km of 2D seismic is currently underway and
interpretation is expected to be completed this year. An extensive
geophysical exploration program is under consideration to better define
the prospectivity of the licence.



-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
Contact:

RNS
Customer
Services
0044-207797-4400
Email Contact
http://www.rns.com

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