Longford Energy Inc.

Longford Energy Inc.

November 17, 2008 09:42 ET

Longford Energy Inc.-Announces Intention to Make A Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - Nov. 17, 2008) - Longford Energy Inc. ("Longford" or "the Company") (TSX VENTURE:LFD) is pleased to announce its intention to make a Normal Course Issuer Bid ("NCIB") to buy back its common shares through the facilities of the TSX Venture Exchange ("Exchange"). The NCIB is subject to receipt of Exchange approval.

Ahmed Said, the President and Chief Executive Officer of Longford, commented, "Our management continues to aggressively pursue opportunities to acquire international oil and gas projects. We believe that the current global financial crisis has further enhanced Longford's relative competitive advantages in pursuing such opportunities as we are currently well-financed. As the global crisis has resulted in a re-pricing of junior oil and gas companies, we also now have the opportunity to repurchase some Longford stock at prices that are below our current cash position per share. We believe that these two trends combine to create an opportunity for Longford to streamline its outstanding capital stock position, thereby improving the potential per share benefits of any subsequent acquisition."

The maximum number of common shares that may be purchased for cancellation pursuant to the NCIB is that number of common shares that represents 10% of the common shares in the public float on the date that the Exchange approves the NCIB. Based on the 34,279,046 common shares in the public float as at November 17, 2008, the maximum number of shares would be 3,427,904. Longford notes that the number of its shares in the public float is less than the number of issued and outstanding Longford common shares because the public float number does not include common shares held by Longford insiders. Although Longford intends to purchase the maximum number of shares available under the issuer bid, the actual number of common shares that would be purchased, if any, and the timing of such purchases will be determined by Longford considering market conditions, stock prices, its cash position, and other factors.

The Board of Directors of Longford believes that the underlying value of Longford, particularly based on the cash on hand per share, is not reflected in the current market price of its common shares, and may not be so reflected at certain times during the course of the NCIB, and has thus concluded that the repurchase of common shares pursuant to the proposed NCIB presently constitutes an appropriate use of financial resources and would be in the best interest of Longford shareholders.

Purchases under the NCIB are expected to be permitted to commence on or about November 24, 2008 and will terminate on November 23, 2009 or the date upon which the maximum number of common shares have been purchased by Longford pursuant to the NCIB. There cannot be any assurance as to how many common shares, if any, will ultimately be acquired by Longford under the NCIB. Longford intends that any shares acquired pursuant to the NCIB will be cancelled. Longford has not previously repurchased any of its common shares pursuant to an issuer bid.

Any purchases made pursuant to the NCIB will be made in accordance with the rules of the Exchange and will be made at the market price of the common shares at the time of the acquisition. Longford will make no purchases of common shares other than open market purchases that may be made during the period that the NCIB is outstanding. GMP Securities has agreed to act on behalf of Longford to conduct the issuer bid.

About Longford Energy Inc.

Longford Energy Inc. is a junior Canadian oil and gas exploration and production company actively pursuing international crude oil and natural gas opportunities.

Cautionary Note

Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the Company's plan of business operations; purchases under the NCIB; receipt of regulatory approval; conduct and operation of the NCIB; and impact and other benefits of the proposed NCIB. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, transaction risks, regulatory risks, oil prices, competition, financing risks, and risks inherent in the junior oil and gas industry. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.


Contact Information

  • Longford Energy Inc.
    Ahmed S. Said
    President & Chief Executive Officer
    (403) 263-3000
    (403) 263-3041 (FAX)
    Email: asaid@longfordenergyinc.com