CALGARY, ALBERTA--(Marketwire - April 30, 2012) - Longford Energy Inc. (TSX VENTURE:LFD) ("Longford" or "the Company") is pleased to announce the closing of the previously announced transaction to sell its 40 per cent undivided interest in the Chia Surkh Block in the Kurdistan region of Iraq to Genel Energy plc (the "Sale Transaction").
As part of the Sale Transaction the Company will receive consideration of USD $68 million, of which USD $37 million cash will be paid to Longford and a total of USD $31 million will be paid directly to the Kurdistan Regional Government as settlement, including historical outstanding capacity building bonus payments, and related interest, due under the Chia Surkh Block Production Sharing Contract.
Subsequent to the closing of the Sale Transaction the Company's listing will transfer from the TSX Venture Exchange to the NEX Board of the Exchange ("NEX"). The trading symbol for the Company will change from LFD to LFD.H. There is no change in the Company's name, its CUSIP number and there will be no consolidation of capital. It is expected that Longford's securities will commence trading on the NEX on or about May 2, 2012.
The Company has started the process of identifying international oil and gas acquisition opportunities. The Board of Directors of Longford strongly believes that given the current prevailing market dynamics in the junior oil & gas sector and given the Company's current cash position, there are exceptional opportunities to pursue with the potential of creating significant value for shareholders. As a part of its strategic review, the Company expects to recruit key management personnel to assist in executing its new strategy.
About Longford Energy Inc.
Longford Energy Inc. is a junior Canadian oil and gas exploration and production company.
This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the sale of Longford's interest in the Chia Surkh block, consideration associated with the sale or the proposed use of the consideration proceeds from the sale. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of exploration activities; regulatory risks; risks inherent in foreign operations; and other risks of the oil and gas industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Ahmed S. Said
President & CEO
+1 (403) 263 3000