JERSEY, CHANNEL ISLANDS--(Marketwire - Mar 29, 2012) -

 March 29th, 2012 LONGREACH OIL AND GAS LIMITED Prospective Resources Estimates Longreach is pleased to announce prospective resource estimates for offshore licences Foum Draa and Sidi Moussa, independently evaluated for the Company by Netherland, Sewell & Associates Inc. (NSAI), in accordance with NI 51-101 disclosure requirements. NSAI have estimated unrisked prospective resources, as of 31st December 2011 for 14 identified prospects and 8 additional leads located in the Foum Draa and Sidi Moussa licences, offshore Morocco. The prospects are Triassic to Paleocene in age and there are a variety of trapping mechanisms such as tilted fault blocks, stratigraphic pinch outs and salt related traps over and against salt diapir flanks. The reservoir rock types are mainly sandstones, but there is also a shelf edge Jurassic carbonate play. Unrisked prospective resources have been estimated as follows: Unrisked Prospective Resources Gross (100 Percent) Longreach Gross Interest (1) Oil Gas Oil Gas Category (MMbbl) (Bcf) (MMbbl) (Bcf) Low Estimate 751.7 302.9 56.4 22.7 Best Estimate 2138.8 1008.5 160.4 75.6 High Estimate 6105.3 3145.3 457.9 235.9 (1) Figures calculated net of ONHYM's 25% back in, giving Longreach with a 7.5% working interest Unrisked prospective resources are the arithmetic sum of multiple probability distributions. Longreach owns a 7.5% interest in these prospects and leads. A copy of NSAI's report has been filed on SEDAR. A dataroom to attract industry partners ahead of commencing a drill campaign was opened on 22nd February and will remain open until 4th May 2012. 18th May has been set as a date for receiving note of Interests from prospective farminees, with final bids to be received by 15th June 2012. Commenting, Bryan Benitz, Chairman and CEO of Longreach, said: "Management believes that these unrisked prospective resource estimates reinforce the excellent work that Technical Operators, Serica Energy have done on these licences over the past two years and demonstrate the significant potential these licences have. The largest identified prospect, Apricot, is a stratigraphic pinch out play concept with dual target potential. NSAI's report states the best estimate of unrisked prospective resources to be 584 MMbbls and 350 Bcf for this dual target prospect, which management believes is significant in its own right. The dataroom has already attracted significant interest and we look forward to concluding this process in June." -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 ] About Longreach: Longreach holds varying interests in five exploration licences in southern onshore and offshore Morocco, totalling approximately 13 million acres of exploration acreage. In the Essaouira basin in Central Morocco, Longreach operates and holds a 50% working interest in three exploration blocks collectively known as Sidi Moktar. According to information available from the Office National des Hydrocarbures et des Mines (ONHYM), historical production of 30.5 Bcf was achieved on the Sidi Moktar exploration licences. The onshore Sidi Moktar licence surrounds the existing producing Meskala field (which is not a part of the Sidi Moktar licence), with gas pipeline infrastructure in place that runs through the permit area. Tie in to this pipeline is believed by management to be achievable, with gas expected to be piped to the town of Youssoufia, where major phosphate plants exist with unmet natural gas demand. The Company holds a 22.5% net interest in the Tarfaya onshore licence. Multiple prospective structures have been identified based on current 2D seismic and the Company's joint venture partners completed a new 608km 2D seismic programme in September 2011, which has shown a considerable improvement in data quality that will allow further assessment of the licence. The Company holds a 22.5% net interest in Zag basin onshore licence. In January 2012 a new 1,674km 2D seismic programme was completed. Processing of this data is now underway. Special Note Regarding Analogous Information Although the Company believes that production on the Meskala field, which is adjacent to the Sidi Moktar licences, may indicate that production is possible on the Kechoula field, no assurance can be given by the Company that commercial production on any of the Sidi Moktar exploration licences will be achieved, or as to the levels of production that may be possible on any of the Sidi Moktar exploration licences if production is achieved. Special Note Regarding Estimates The unrisked prospective resources described above have been estimated using probabilistic methods and are dependent on a petroleum discovery being made. Volumes described above are an arithmetic sum of multiple estimates, which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should give attention to the estimates of individual classes and appreciate the differing probabilities of recovery associated with each. The probability associated with the high estimate would be considered far less likely than the best estimate, and conversely, the low estimate would be expected to be much higher than the presented arithmetic sum. As used in the COGE Handbook, "prospective resources" are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. The prospective resources in NSAI's report indicate exploration opportunities and development potential in the event a petroleum discovery is made and should not be construed as reserves or contingent resources. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. 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, statements with respect to the completion of the farm-in agreement, 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, 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; 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