LongBow Energy Corp.
TSX VENTURE : LBV

LongBow Energy Corp.

August 03, 2006 12:29 ET

LongBow Energy Corp. Announces Management Restructuring

CALGARY, ALBERTA--(CCNMatthews - Aug. 3, 2006) - LongBow Energy Corp (TSX VENTURE:LBV) ("Longbow" or the "Company") is pleased to announce that it has entered into an agreement ("Management Agreement") with Discovery Drilling Funds Management Inc. (DDF Management) whereby DDF Management will provide support for the Company in the areas of daily oil and gas operations, accounting, geology, engineering, strategic planning, finance and executive management in exchange for a royalty interest on the Company's production. The objective of the Management Agreement is to enhance LongBow's existing management strengths in order to provide a solid foundation for long-term growth. In addition to engaging DDF Management under the Management Agreement, LongBow is proposing to make certain changes to its management team. The Management Agreement and the changes to the Company's management are subject to the approval of the TSX Venture Exchange.

DDF Management is a private oil and gas exploration management company engaged in the structuring and operation of institutional and private client exploration consortiums. DDF Management is controlled by Sean Kehoe and Charles Cook.

Mr. Mark Ross, P.Eng., the current President of LongBow, will move to the position of Vice President of Engineering and Drilling Operations. Mr. Ross has more than 24 years of experience in the oil and gas industry, his experience spans a variety of executive roles in addition to extensive hands on experience in the area of drilling operations. Mark Ross is the president and owner of Ross Energy Services Ltd., an oilfield engineering and consulting company based in Calgary, Alberta. Ross Energy is focused on drilling, completions, workovers and facility / pipeline construction in the Western Canadian oil business. Prior to forming Ross Energy in 1992, Mr. Ross worked as an operations engineer for a senior oil and gas company for twelve years.

Mr. Charles Cook will assume the position of Manager of Business Development and Production of LongBow. Over a twenty five year career in the oil and gas industry with several senior oil and gas companies, Mr. Cook has directed and led large oil and gas investment programs that included responsibility for acquisitions, seismic, drilling, facilities and production.

Mr. Cook's responsibilities in Alberta and British Columbia have included:

Production - 60,000 boe per day

Investment Program - $100 million per year

Staff - 200 people (included operations, engineering, geology, geophysics, finance and land)

Mr. Cook has been responsible for developing strategies and mandates for both onshore and offshore Oil and Gas Investments including oil sands, secondary recovery, miscible floods and large oil and gas offshore projects. Mr. Cook has also served as the Manager of Corporate Risk for a large public energy company, identifying the material financial, investment, operational and market risks that an upstream oil and gas company faces. In addition, Mr. Cook has served as a Corporate Pension Officer managing a senior oil and gas company's $150 million pension fund including developing the strategy and mandates for both North American and International investments.

Mr. Sean Kehoe has been appointed President and Chief Executive Officer of LongBow. Mr. Kehoe has been involved in the Investment Banking and Private Placement financing business for over 20 years, focusing principally on the structuring and management of high net worth private client partnerships. He is the Managing Director and co-founder of Discovery Drilling Funds in addition to being President and CEO of Beringer Capital Partners Ltd.

Beringer Capital Partners Ltd. is an investment-banking firm, registered with the Ontario Securities Commission as a Limited Market Dealer. Beringer's primary focus is the structuring, management and corporate finance of private equity partnerships, venture capital interests and emerging growth companies. Through Beringer and related companies, Mr. Kehoe has been involved in the creation, financing, and management of business in a variety of industries, with a primary focus of oil and gas exploration and development over the last six years. Mr. Kehoe is a director and one of the founding members of the Limited Market Dealers Association of Canada.

Mr. Blaine Reid, (C.G.A.) will be replacing Mr. Alfred Friesen C.A. as the Chief Financial Officer of LongBow. Mr. Reid has over twenty seven years of experience in the accounting field, of which seventeen have been in the oil and gas industry in a variety of senior accounting roles.

In connection with Mr. Kehoe and Mr. Cook's appointments, they have agreed to forego any compensation by way of salary or stock options from LongBow. As compensation for the services provided by DDF Management, it will be granted a 5% royalty interest in production to a maximum of 500 boe/d. If LongBow achieves a production level of 500 boe/d or more, the royalty interest will be independently valued and, subject to all required regulatory and shareholder approvals, converted to common shares in the Company. The compensation structure is designed to preserve LongBow's cash flow and minimize dilution to existing shareholders. At current production levels, the amount payable by LongBow under the Management Agreement would be approximately $4,500.00 per month.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • LongBow Energy Corp.
    Mr. Mark Ross
    (403) 264-4722
    or
    LongBow Energy Corp.
    Tamara Yourth
    (403) 264-4722
    (403) 269-5518 (FAX)