Longford Corporation
TSX VENTURE : LFD

September 24, 2007 17:30 ET

Longford Corporation Announces $2.2 Million Debt Financing

CALGARY, ALBERTA--(Marketwire - Sept. 24, 2007) -

NOT FOR ISSUE IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES

Longford Corporation ("Longford" or the "Company") (TSX VENTURE:LFD) announces that its Board of Directors has approved the issuance of promissory notes in an aggregate principal amount of $2,200,000, subject to regulatory approval. Amounts outstanding under the Notes shall accrue interest at a rate of 12% per year, compounded and payable semi-annually, and shall be outstanding for a period of two years from the date of issue. At the option of the Company, any portion of the Note may be repaid without early repayment penalties.

Longford is pleased to announce that it is moving forward in remedying its working capital shortfall, and has successfully reached settlements with the majority of its creditors. The Company anticipates that it will be in a position to settle its accounts with all creditors prior to September 30, 2007. At that time, the proceeds from the Notes will be used to settle all liabilities, as well as fund future general and administrative expenses as they occur.

The Company is optimistic and continues to investigate its strategic alternatives. These alternatives may include, among other things, revisions to the Company's strategic plan, asset divestitures, operating partnerships or identifying additional capital sources. The Company does not intend to comment on developments regarding the evaluation of alternatives until such time as the Board of Directors has approved a specific course of action or such a decision regarding a specific course of action is probable. There is no assurance that this process will result in any changes to the Company's current strategic direction.

Ahmed S. Said, President & CEO of Longford, commented, "We are focused on establishing a reputable junior oil and gas company, and our primary objective is to enhance shareholder value."

Forward-looking Information

Statements in this release that are not historical facts are "forward-looking information" within the meaning of applicable securities law. Certain information in this news release including the board's assessment of future plans and operations, the ability of the Company to complete the debt financing, the proposed use of proceeds, and the Company's plans regarding the settlement of outstanding debts may constitute forward-looking information. Such information necessarily involves risks including, without limitation, risks associated with inability to attract required financing at attractive prices, oil and gas development, production, competition for assets, inability to retain drilling rigs and other services, and delays resulting from or inability to obtain required regulatory approvals. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking information".

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Longford Corporation
    Ahmed S. Said
    President and CEO
    (403) 441-1160
    (403) 263-3041 (FAX)