Long Run Explor Ltd Ord WFREF

RE:The Sprott Factor

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OUTLOOK Long Run is focused on providing long-term value to shareholders through a sustainable dividend model. Controlled exploitation of our core assets and strategic acquisitions form the basis of our goal of funding both net capital expenditures and dividends from funds flow from operations. Throughout the commodity price cycle, we remain committed to protecting our dividend through active portfolio management, proactive hedging and a focus on cost efficiencies. We are updating our 2014 guidance to account for forecasted third party outages and lower oil prices as discussed further below. In looking ahead to 2015, we are reviewing our capital spending plans under a variety of commodity price environments, with an aim to preserve our current dividend and maintain fourth quarter 2014 production through 2015. Long Run plans to release our 2015 guidance in mid-December. For 2015, Long Run has placed hedges on approximately 30% of production balanced between oil and natural gas. Approximately 40% of our liquids production is hedged for the first quarter of 2015, which will assist to support a strong capital program. Long Run will endeavor to add additional hedges during 2015 to increase overall hedged volumes into the range of 35 to 50%.