CALGARY, ALBERTA -- (Marketwire) -- 05/29/12 -- Longford Energy Inc. (NEX BOARD: LFD.H) ("Longford" or the "Company") announces that following a thorough internal review, the Company has determined that it will not complete a return of capital to shareholders using the proceeds from the recent sale of the Company's assets in the Kurdistan Region of Iraq (the "Sale Transaction").
The Company is actively engaged in the process of identifying prospective assets for acquisition, including global mining and oil & gas opportunities. The Company has identified oil & gas assets in Middle East, East and West Africa as well as South America and is reviewing these assets. Additionally, the Company is reviewing mining assets in Australia. There are no guarantees that a transaction will be completed in respect to these assets, however given the Company's current cash position and the prevailing capital market and economic dynamics, there are exceptional opportunities to pursue with the potential of creating significant value for shareholders, over and above what shareholders could expect to receive from a return of capital.
Mr. Ahmed Said, President and Chief Executive Officer, stated "Our cash position should give us a significant advantage in the current junior resource markets. Over the next few months we expect to identify a significant asset and recruit an experienced management team that can generate value for our shareholders".
The board of directors has formed an independent special committee, comprised of Mr. David Argyle, Mr. Peter Boot and General Jay Garner, to review potential acquisition prospects and present their recommendations to management of the Company.
Several of Longford's major shareholders have indicated that they are supportive of pursuing acquisition opportunities rather than paying a return of capital to shareholders at this time.
The Company also announces that it has appointed Mr. Peter Boot to the board of directors of Longford. Mr. Boot takes the place vacated by the Honorable Pierre Pettigrew who has resigned from the board to focus on other external board commitments.
Mr. Boot started his career with ING Bank in Sao Paulo, Brazil and held the position of Country Manager for Paraguay and Bolivia, and Country Manager and Supervisor Board Member of Netherlands Caribbean Bank NV in Havana Cuba. Mr. Boot currently sits on the board of Mega Energia, a Brazilian company involved in equipment lease, gas stations, real estate and mining and Brookwater Ventures Inc., a TSX-V listed company focused on oil and gas opportunities in Brazil. Mr. Boot is also a board member of Steel Participacoes e investimentos SA.
The board of Longford would like to thank Honourable Pierre Pettigrew for his service to the Company and wish him well in the future.
About Longford Energy Inc.
Longford Energy Inc. is a public company listed on the NEX board of the TSX Venture Exchange.
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 acquisition opportunities; the use of funds from the Sale Transaction; and the current state of capital and economic markets. 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 operations. 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.
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Longford Energy Inc.
Ahmed S. Said
President & CEO
+1 (403) 263 3000