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Longreach Oil & Gas Limited: Q2 Interim Results

JERSEY, CHANNEL ISLANDS--(Marketwire -08/15/12)-

  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