Long Run Exploration Ltd. Announces Closing of Non-core Assets Sale

Fri Dec 14, 2012 5:01pm EST

* Reuters is not responsible for the content in this press release.

  CALGARY, ALBERTA, Dec 14 (MARKET WIRE) --
Long Run Exploration Ltd. ("Long Run" or the "Company") (TSX:LRE)
announces that the Company has closed the previously announced
disposition of its non-core Viking interests located in the Plato /
Dodsland / Lucky Hills areas of Saskatchewan for total cash consideration
of $180 million (subject to customary closing adjustments).

    Sale proceeds have been used to reduce the Company's bank debt. As a
result of this transaction, Long Run's anticipated year-end net debt will
be approximately $290 million. Long Run's revolving, syndicated credit
facility remains at $450 million. The $50 million non-renewable
development facility has been repaid and canceled.  

    Long Run's current production is approximately 23,000 boe per day
weighted 48% to crude oil and NGLs. Additional information on current
Long Run operations is available in the operational update press released
on November 26, 2012. 

    Long Run is a Calgary-based intermediate oil company focused on light-oil
development and exploration in western Canada. For further information
about Long Run, visit the Company's website at
www.longrunexploration.com. 

    ADVISORIES 

    Forward Looking Statements: 

    Certain information regarding Long Run in this news release including
management's assessment of future plans and operations and anticipated
year-end net debt are forward looking statements. Since forward-looking
statements address future events and conditions, by their very nature
they involve inherent risks and uncertainties including, without
limitation, risks related to closing of the disposition and satisfaction
of the conditions precedent thereto, the effect of the business
combination and resulting operations, risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and
other services, capital expenditure costs, including drilling, completion
and facilities costs, unexpected decline rates in wells, wells not
performing as expected, delays resulting from or inability to obtain
required regulatory approvals and ability to access sufficient capital
from internal and external sources. As a consequence, actual results may
differ materially from those anticipated in the forward-looking
statements. 

    Forward-looking statements or information are based on a number of
factors and assumptions which have been used to develop such statements
and information but which may prove to be incorrect. Although the Company
believes that the expectations reflected in such forward-looking
statements or information are reasonable, undue reliance should not be
placed on forward-looking statements because the Company can give no
assurance that such expectations will prove to be correct. In addition to
other factors and assumptions which may be identified in this document,
assumptions have been made regarding, among other things: the impact of
increasing competition; the general stability of the economic and
political environment in which the Company operates; the timely receipt
of any required regulatory approvals; the ability of the Company to
obtain financing on acceptable terms; field production rates and decline
rates; the ability to replace and expand oil and natural gas reserves
through acquisition, development and exploration results; the timing and
costs of pipeline, storage and facility construction and expansion and
the ability of the Company to secure adequate product transportation;
future oil and natural gas prices; currency, exchange and interest rates;
the regulatory framework regarding royalties, taxes and environmental
matters in the jurisdictions in which the Company operates; and the
ability of the Company to successfully market its oil and natural gas
products. Readers are cautioned that the foregoing list of factors and
assumptions is not exhaustive. Additional information on these and other
factors that could affect Long Run's operations and financial results are
included in reports on file with Canadian securities regulatory
authorities and may be accessed through the SEDAR website
(www.sedar.com), at Long Run's website (www.longrunexploration.com).
Furthermore, the forward looking statements contained in this news
release are made as at the date of this news release and Long Run does
not undertake any obligation to update publicly or to revise any of the
included forward looking statements, whether as a result of new
information, future events or otherwise, except as may be required by
applicable securities laws. 

    BOES: 

    Disclosure provided herein in respect of barrels of oil equivalent (boe)
may be misleading, particularly if used in isolation. A boe conversion
ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. Given that the value ratio based on the
current price of crude oil as compared to natural gas is significantly
different from the energy equivalency of 6:1; utilizing a conversion on a
6:1 basis may be misleading as an indication of value. 

Contacts:
Long Run Exploration Ltd.
William E. Andrew
Executive Chairman and Chief Executive Officer
(403) 261-6012

Long Run Exploration Ltd.
Dale A. Miller
President
(403) 261-6012

Long Run Exploration Ltd.
Jason Fleury
Vice President, Capital Markets
(403) 261-8302

Long Run Exploration Ltd.
Investor Relations
(888) 598-1330
information@longrunexploration.com
www.longrunexploration.com

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