Longford Energy Inc.
TSX VENTURE : LFD

Longford Energy Inc.

September 21, 2009 07:30 ET

Longford Energy Inc.-Announces Sale of Canadian Oil & Gas Properties

CALGARY, ALBERTA--(Marketwire - Sept. 21, 2009) - Longford Energy Inc. ("Longford" or the "Company") (TSX VENTURE:LFD) announces today that the Company has signed a letter of intent with Stetson Oil & Gas Ltd. ("Stetson") (TSX VENTURE:SSN) whereby Stetson will acquire Canadian oil and gas properties from Longford for a purchase price of $425,000 effective September 1, 2009 (the "Transaction"). The properties are situated in the Lashburn area of Saskatchewan and the Brazeau and Alder Flats areas of Alberta. Total combined net production from these properties is approximately 45 boepd. Closing of the Transaction is expected to occur on or before September 30, 2009, subject to TSX Venture Exchange approval.

Longford's oil and gas reserves were evaluated by GLJ Petroleum Consultants Ltd. ("GLJ") effective July 31, 2009. The GLJ evaluation estimated total proven and probable reserves of 96,000 barrels of oil equivalent ("boe"), with a net present value, before tax and discounted at 10%, of $1,281,000. As part of the Transaction, Stetson will assume abandonment liabilities on two wells and an oil battery located at Alder Flats.

The Transaction will be considered a non-arm's length transaction for the purposes of the TSX Venture Exchange because Stetson and Longford have two common directors, being Stan Bharti and Ahmed Said, and two common officers, being Gary Lobb and Patrick Gleeson.

The Transaction is part of Longford's strategic plan to focus on its significant interest recently acquired in the Chia Surkh Block Production Sharing Contract in the Kurdistan Region - Iraq.

About Longford Energy Inc.

Longford Energy Inc., is a junior Canadian oil and gas exploration and production company. Longford has acquired a significant interest in the Chia Surkh Block Production Sharing Contract in the Kurdistan Region - Iraq. The Block offers both a field development opportunity and multiple exploration prospects. For additional information, please contact:

Disclaimers:

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Net present value, net present value per share, future projected net revenue and similar measures are estimated values and do not represent fair market value.

Statements in this release that are not historical facts are "forward-looking information" within the meaning of applicable securities law. Forward-looking information typically contain words such as "anticipate", "plan", "expect", "potential", or similar words suggesting future outcomes and include, without limitation, statements regarding the impact of the sale of the assets, Longford's strategic plan; future performance of management and the board; the Company's operational plans; corporate strategy; the commercial terms of the production sharing contract, government relations, the prospective nature of the Chia Surkh Block acquired and the availability of further acquisition opportunities in the future. There can be no assurance that such information will prove to be accurate; actual results and future events could differ materially from such information. Factors that could cause actual results to differ materially include, among others, commodity prices, third party risks, acquisition risks, risks inherent in the oil and gas industry, licensing risks, financing risks, regulatory risks and environmental concerns. Investors are cautioned not to place undue reliance on forward-looking information.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

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