January 24, 2012

LONGREACH OIL AND GAS LIMITED

Operations Update

Zag Licence - Morocco
Longreach Oil and Gas Limited ("Longreach" or "the Company"), the independent oil and gas company holding substantial exploration and development licences in Morocco, is pleased to announce the completion of a 2D seismic programme on the Zag license.
The programme covered a total of 1,674km of 2D seismic, which is considerably greater than the 500km required under the terms of the license. The programme covered a regional grid of around 10 km spacing over the eastern half of the licence and is the first of its kind in what the Company believes is a highly prospective basin.
The key highlights of the programme were: