Mr. William Andrew reports

LONG RUN EXPLORATION LTD. ANNOUNCES 2015 SECOND QUARTER RESULTS

Long Run Exploration Ltd. has released its financial and operational results for the second quarter of 2015.

Commodity prices have continued to demonstrate weakness through the second quarter of 2015; however, Long Run is committed to its disciplined capital spending plan. Based on the company's financial and operational results over the first half of the year, it remains on track to meet its 2015 capital budget, production and funds flow targets. The company's team is focused on cost-saving initiatives in an effort to reduce capital and operating costs, and improve project returns in this challenging commodity price environment.

Long Run continues to examine strategic and financial means to improve the capital structure of the company. The company believes in the value of its diversified asset base, and is diligently working toward a balance between improved financial strength and operational momentum.

Second-quarter 2015 highlights:

• Generated funds flow from operations of $45.9-million (24 cents per share) compared with $73.4-million (54 cents per share) in 2014, reflecting lower commodity prices and lower oil production partially offset by higher natural gas and natural gas liquids production, a gain on financial derivatives, and lower royalties. Funds flow from operations in the first half of 2015 totalled $85.9-million (44 cents per share);
• Averaged 34,457 barrels of oil equivalent per day (Boe/d) of production, an increase of 6,855 Boe/d from 27,602 Boe/d in 2014. The production increase resulted primarily from the liquids-rich-natural-gas-weighted Deep Basin acquisitions in 2014. Production averaged 35,026 Boe/d over the first six months of 2015;
• Reduced capital expenditures to $8.8-million compared with $57.3-million in 2014. Capital expenditures of $54.1-million were incurred over the first six months of 2015, in line with the company's planned expenditures of $50-million to $55-million. Expenditures were focused on the Deep Basin Cardium and Peace River Montney core areas;
• Executed on $10.1-million of non-core dispositions with proceeds being directed toward debt repayment;
• Reduced net debt at June 30, 2015, by $30.4-million from Dec. 31, 2014, on track with the company's debt reduction goal of $100-million for 2015. The reduction in net debt was a result of disposition proceeds and funds flow from operations exceeding capital expenditures. As at June 30, 2015, Long Run's net debt was $709.2-million, and the company was in compliance with all covenants, obligations and conditions of the company's credit agreement;
• Recorded a net loss of $50.1-million compared with net earnings of $20.8-million in 2014, primarily as a result of lower funds flow from operations and higher unrealized losses on financial derivatives. Over the first six months of 2015, a net loss of $73.0-million was recorded;
• Completed the semi-annual review of the company's credit facilities with its bank syndicate on May 29, 2015. Total credit facilities were maintained at $695-million. The amended credit facilities consist of a $410-million revolving syndicated facility, a $40-million revolving operating facility and a $245-million non-revolving syndicated facility.

                          SUMMARY OF QUARTERLY RESULTS
         ($000s, except per-share amounts or unless otherwise noted)

                                 Three months ended         Six months ended
                                            June 30,                 June 30,
                                  2015         2014        2015         2014
Funds flow from
operations (1)                 $ 45,924    $ 73,429    $ 85,882    $ 143,479
Per share, basic (1)               0.24        0.55        0.44         1.10
Per share, diluted (1)             0.24        0.54        0.44         1.10
Net earnings (loss)             (50,136)     20,842     (72,954)      27,613
Per share, basic                  (0.26)       0.16       (0.38)        0.21
Per share, diluted                (0.26)       0.15       (0.38)        0.21
Production
Oil (Bbl/d)                       9,429      12,476       9,990       12,580
NGL (Bbl/d)                       4,659       2,038       4,933        1,812
Total liquids (Bbl/d)            14,088      14,514      14,923       14,392
Natural gas (Mcf/d)             122,214      78,524     120,620       73,327
Total (Boe/d)                    34,457      27,602      35,026       26,613
Prices, including
derivatives
Oil ($/Bbl)                       72.03       89.59       68.52        87.73
NGL ($/Bbl)                       24.48       72.76       23.44        78.89
Total liquids ($/Bbl)             56.31       87.23       53.61        86.62
Natural gas ($/Mcf)                3.30        4.61        3.23         5.03
Total ($/Boe)                     35.04       59.13       34.24        60.82
Revenues, before royalties       93,436     158,678     174,760      310,564
Capital expenditures              8,770      57,330      54,085      158,178
Net acquisitions
(divestitures)                   (9,530)    213,716     (10,922)     210,037
Net capital expenditures           (760)    271,046      43,163      368,215
Total assets                  1,823,017   1,750,681   1,823,017    1,750,681
Bank loan                       625,943     494,500     625,943      494,500
Net debt (1)                    709,246     594,085     709,246      594,085
Non-current financial
liabilities, excluding
bank loan                        68,986      68,768      68,986       68,768

(1) Non-generally accepted accounting principles

Selected financial and operational information outlined in this news release should be read in conjunction with Long Run's unaudited interim financial statements, and related management's discussion and analysis for the period ended June 30, 2015, which will be available for review on SEDAR and on the company's website.

Second-quarter 2015 update

As planned, capital expenditures of $8.8-million were incurred in the quarter with no new wells drilled. Long Run executed on $10.1-million in non-core dispositions relating to a pipeline sale and minor properties producing approximately 50 Boe/d. Proceeds from these dispositions have been directed toward debt repayment.

Second-quarter 2015 production averaged 34,457 Boe/d (41 per cent oil and NGL), including Deep Basin production of 13,072 Boe/d (31 per cent oil and NGL), Peace River Montney production of 8,767 Boe/d (55 per cent oil and NGL), and Redwater Viking production of 3,295 Boe/d (87 per cent oil and NGL).

Realized oil prices in the second quarter of 2015, including derivatives, averaged $72.03 per barrel (Bbl) compared with $89.59/Bbl in 2014. The decrease was a result of lower West Texas Intermediate benchmark prices partially offset by an increase in the U.S.-dollar exchange rate and a gain on oil financial derivatives. Long Run's average NGL price decreased to $24.48/Bbl from $72.76/Bbl in 2014, reflecting lower market prices as well as the change in the company's NGL product mix following the Deep Basin acquisitions in 2014. Average natural gas prices, including derivatives, of $3.30 per thousand cubic feet decreased from $4.61 per thousand cubic feet in 2014, reflecting weaker AECO benchmark prices partially offset by a gain on natural gas financial derivatives.

Long Run's realized prices in the second quarter of 2015 benefited significantly from the company's continuing risk management program. The company's financial derivatives contributed $13.70/Bbl to its realized oil price and 41 cents per thousand cubic feet to its realized natural gas price. In total, Long Run recognized a $16.4-million gain on financial derivatives, comprising $11.8-million from oil contracts and $4.6-million from natural gas contracts.

In the second quarter of 2015, the company's operating netback of $19.92 per barrel of oil equivalent (Boe) and corporate netback of $14.64/Boe reflected lower commodity prices partially offset by lower royalties, lower operating costs and a realized gain on financial derivatives. Long Run's average operating costs were $11.55/Boe impacted by the addition of the lower-cost Deep Basin assets, and lower utilities, fuel and chemical costs. Royalty rates averaged 7 per cent, reflecting the low-commodity-price environment. Long Run's general and administration expense averaged $2.53/Boe. Annual operating costs, and general and administration expense are expected to average $13.25/Boe and $2.50/Boe, respectively, for 2015. The company continues to forecast average royalty rates of 10 per cent to 11 per cent for the year.

Outlook

For 2015, Long Run is targeting $100-million of debt reduction through disposition proceeds and funds flow from operations in excess of its annual capital spending. The company continues to expect annual funds flow from operations of between $120-million to $135-million to exceed its planned capital spending of $100-million. The company plans to repay the remaining $145-million on the non-revolving syndicated facility due by May 29, 2016, through further strategic and financial means, which may include asset dispositions and alternative debt refinancing.

Second half of 2015 capital spending is expected to be $45-million, with a focus on the Redwater Viking and Deep Basin Edson properties. After reviewing expected cost structures and factoring in forecast commodity prices, the company has reallocated capital spending. It anticipates drilling 12.0 net Redwater Viking wells in the second half of 2015, in place of the previously planned 4.0 Kakwa/Elmworth Cardium wells. It continues to plan for 3.0 Edson wells to be drilled in the fourth quarter. Long Run's annual production guidance of 32,000 to 33,000 Boe/d (43 per cent oil and NGL) remains unchanged. Long Run's current production is approximately 31,500 Boe/d (41 per cent oil and NGL).

The company's continuing risk management program continues to be an important part of its strategy to mitigate commodity price risk. For the second half of 2015, Long Run has hedged approximately 60 per cent of its oil production (40 per cent with an average floor price of WTI $95 (U.S.)/Bbl and 20 per cent with an average floor price of $74.50/Bbl) and 70 per cent of its natural gas production (average floor price of $3.30 per gigajoule (GJ)). For 2016, the company has hedged approximately 10 per cent of its oil production with an average WTI price of C$77.53/Bbl and approximately 45 per cent of its natural gas production with an average AECO price of $3.01/GJ. The company continues to look for additional opportunities to add financial hedges into 2016 in order to protect funds flow from continued commodity price volatility.

We seek Safe Harbor.