LONGREACH OIL AND GAS LIMITED COMMENCES TRADING

TORONTO, Oct 4 /CNW/ - LONGREACH OIL AND GAS LIMITED (TSX-V:  LOI) (formerly Chairman Capital Corp., the "Longreach" or the "Company") is pleased to announce that following the closing of its qualifying transaction, as announced in its press release dated September 24, 2010, its shares have today commenced trading on the TSX Venture Exchange ("TSX-V") under the symbol "LOI".

Longreach

Longreach holds varying interests in 4 exploration licenses in southern onshore and offshore Morocco, totalling approximately 11.8 million acres of exploration acreage, accounting for approximately 15% of the country's total license area. 

Longreach's Zag license is located in the Zag-Tindouf Basin Complex in southern Morocco, and is on trend with what Longreach believes to be significant gas discoveries in Algeria.  The Company believes that the Zag license has multi TCF (trillion cubic feet) resource potential. Longreach holds a 30% interest in the Zag license.

Longreach's Tarfaya license represents its nearest term development opportunity. Multiple prospective structures have been identified based on current 2D seismic and a further seismic programme is planned for Q4 this year. Longreach intends to identify drill targets by the first quarter of 2011. Eight exploration wells were drilled on the license between 1961 and 1972, with a combination of both oil and gas shows.  Subsequent seismic studies have identified that these wells were drilled off structure.  Longreach holds a 30% interest in the Tarfaya license. 

The offshore Sidi Moussa and Foum Draa licenses have been extensively explored, with 5,200 km² of 3D seismic and 2,000 km of 2D seismic completed by a previous operator.  Multiple prospects have been identified on each license, nine of which have resource potential greater than 50 million barrels.  Seismic reprocessing is currently underway.  Longreach holds a 10% interest in both licenses.

Further detailed information regarding Longreach's exploration licenses and the area under license is set out in Longreach's filing statement dated July 19, 2010 (the "Filing Statement").  A copy of the Filing Statement is available under the Company's SEDAR profile at www.sedar.com. 

Management and Strategy

Members of the Longreach management team have a proven track record of creating value through the development of oil and gas assets, including the involvement of the Company's Chairman and Chief Executive Officer in the sale of Tanganyika Oil to SINOPEC. The team has a strong working relationship with the Office Nationales des Hydrocarbures et des Mines ("ONHYM"), the national petroleum and minerals company of the Kingdom of Morocco and extensive experience in the region.

Longreach's strategy is to create a balanced oil and gas exploration, development and production company with a combination of high impact / higher risk exploration and lower risk development assets, underpinned by production. The exploration assets are in place and Longreach is currently in the process of seeking appropriate producing assets.

The proceeds of the Offering will be used to fund Longreach's cost commitments for a 2D seismic acquisition program on the onshore Zag and Tarfaya licences and the seismic reprocessing operation for Sidi Moussa and Foum Draa offshore licences, as well as funding general and administrative expenses for the forthcoming 12 months.  More detail regarding the use of proceeds is set out in the Filing Statement.

Longreach believes it has gained an early mover advantage in Morocco.  According to the ONHYM, the country has seen a significant acceleration in the development of its oil and gas potential since 1997, with the number of exploration permits increasing from 9 to 126 by 2010. ONHYM attributes this acceleration to amendments made to the hydrocarbon code and the creation of ONHYM in 2000, which encouraged the development of hydrocarbons by foreign companies and a need to satisfy growing demand through the exploitation of domestic reserves. Information published by ONHYM indicates that Morocco currently imports approximately 78% of its gas and approximately 99% of its oil needs, and domestic demand for hydrocarbons has grown at approximately 6.5% per annum over the past three years.  We believe that Morocco provides a favourable pricing environment coupled with a very attractive fiscal regime. 

Commenting, Bryan Benitz, Chief Executive Officer of the Company, said:

"The closing of the transaction represents a further significant marker in Longreach's development. Morocco is a relatively new hydrocarbon territory; we believe that it has clear and significant potential and Longreach has an early mover advantage. Our strategy is to develop a balanced portfolio of assets, including higher risk / reward and development, underpinned by production and cashflows. The exploration assets are in place and we hope to be able to acquire producing assets in the relative near term. While significant investment has already been put into the Company, this Transaction represents a milestone from which we hope to be able to develop a very exciting future for all shareholders". 

Private Placement

As previously announced on September 24, 2010, as part of and prior to the closing of the Company's qualifying transaction, Longreach Oil and Gas Ventures Limited (now a wholly owned subsidiary of the Company, "Ventures") completed a concurrent private placement of 1,166,759 "Units" at a price of Cdn.$3.00 per Unit for proceeds of Cdn.$3,500,277. Each Unit consists of one common share of Ventures and one-half of one Ventures common share purchase warrant.  In connection with the qualifying transaction the 1,166,759 Ventures shares and 583,378 Ventures share purchase warrants comprising the Ventures Units were exchanged for 3,761,625 shares and 1,880,805 share purchase warrants of the resulting issuer, Longreach.  Each whole Longreach warrant is exercisable for one common share of Longreach at an exercise price of Cdn.$1.50 per share on or prior to September 24, 2012, which is the date that is the later of: (i) 12 months from the date Longreach is listed on the TSX-V; and (ii) 24 months from the Offering closing date. 

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.

The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States and these securities may not be offered or sold, directly or indirectly, within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) without registration under the U.S. Securities Act and any applicable state securities laws unless an exemption from registration is available. This news release is not an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

For further information:

Longreach
Bryan Benitz	Chairman & CEO	[phone]

Additional information on Longreach Oil and Gas Limited can be found at www.sedar.com.

Or Longreach's investor relations agent:

Pelham Bell Pottinger
Mark Antelme / Philip Dennis	[phone]

Additional information on Longreach Oil and Gas Limited can be found at www.sedar.com.