CALGARY, ALBERTA--(Marketwire - Nov 15, 2012) - Long Run Exploration Ltd. ("Long Run" or the "Company") (LRE.TO) is pleased to announce that it has signed a definitive purchase and sale agreement (the "Agreement") to sell certain non-core assets for total cash proceeds of approximately $180 million, before any closing adjustments.

The non-core assets include the Company''s Viking interests located in the Plato / Dodsland / Lucky Hills areas of Saskatchewan. These assets are currently producing approximately 1,900 boe per day (1,800 barrels per day of crude oil and 600 mcf per day of natural gas, based on field estimates). Subject to receipt of all regulatory approvals, the sale is expected to close on or about December 14, 2012. The proceeds from the sale will be used to reduce indebtedness. As a result of this transaction, our anticipated year-end net debt will be approximately $290 million, including bank debt of approximately $240 million.

Following the sale of this asset, we anticipate production to be approximately 23,000 boe per day weighted 48% to crude oil and NGLs.

The Board of Directors of Long Run has approved a capital budget for 2013. We anticipate a robust exploration and development program of between $260 - $270 million. Our capital plan will focus on the development of key oil resource plays in the Montney zone of the Peace River Arch and in the Viking zone of central Alberta. Exploration initiatives include further delineation of our Duvernay shale resource play, extension of the Triassic oil fairway in the Peace River Arch and initial exploration into our emerging Slave Point oil resource play flanking the Peace River Arch.

As part of our ongoing risk management program, we have recently entered into a number of new financial contracts. Long Run has now hedged approximately 50% of our 2013 forecast production volumes (43% of crude oil and 56% of natural gas). Crude oil is hedged at prices averaging $92.51 per barrel and natural gas is hedged at an average price of $3.72 per mcf.

Long Run anticipates releasing on November 26, 2012, an operational update which will include an overview of current operations and more details on our 2013 budget.

Cormark Securities Inc. acted as financial advisor to Long Run on the asset divestiture.

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