grant of exploration licence - atp-755-p - surat b

Grant of Exploration Licence - ATP-755-P - Surat Basin,

QueenslandLongreach Oil Ltd is pleased to announce that under the provisions of the Queensland Petroleum Act 1923,

The Queensland Minister for Natural Resources and Mines, the Honourable Stephen Robertson, MP, has granted Authority to Prospect for Petroleum Number 755-P for a term of four years, as from 1 December 2004.ATP-755-P has been granted to:

1.Longreach Oil Ltd - 50%.

2.Brisbane Petroleum N L- 50%.Brisbane Petroleum N L is an unlisted public company in which Longreach Oil has a 22% shareholding.

Longreach Oil will become Operator of the area.ATP-755-P is 374 sq. km.in area and lies immediately west of Petroleum Lease 18, where the YellowbankCreek and Thomby Creek oilfields are located.Two Showgrounds Sandstone oil accumulations, with oil similar to that found in the two oilfields mentioned above, are known to exist in ATP-755P:A.McWhirter, 5 km NNW of Yellowbank Creek oilfield. Approximately two thirds of the structure is in ATP-755-P and one third is in PL-18.B.Beardmore, 2 km west of the Yellowbank Creek oilfield.Two oil wells have been drilled in McWhirter and one in Beardmore.Existing seismic control and other geophysical and geological data will be reinterpreted. With the current high crude oil price, these deposits should become viable for production.The companies are investigating re-entering and re-completing the McWhirter #1 well, which has already been cased and perforated.For and on behalf of Longreach Oil Limited