Longford Energy Inc.
TSX VENTURE : LFD

Longford Energy Inc.

February 29, 2008 07:45 ET

Longford Energy Inc.-Completion of $3,000,000 Private Placement, Operational Update, and Launch of New Website

CALGARY, ALBERTA--(Marketwire - Feb. 29, 2008) -

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

Longford Energy Inc. ("Longford" or "the Company") (TSX VENTURE:LFD) is pleased to announce that it has completed in full a private placement financing for total gross proceeds of $3 million. Longford plans to use the net proceeds to repay outstanding debentures and for general corporate purposes.

In connection with the financing, the Company has issued a total of 11,111,111 Units. Each Unit, which is comprised of one common share and one common share purchase warrant ("Warrant"), was sold at a price of $0.27. Each Warrant entitles the holder to acquire one common share at a price of $0.35 per share until February 28, 2010. Each of the common shares, the Warrants and the shares issued upon the exercise of the Warrants will be subject to a hold period that will expire on June 29, 2008. Under its profile on SEDAR, Longford has filed a material change report relating to this financing. Because of the insider participation in the financing, applicable securities laws require that Longford explain that the material change report was filed less than 21 days prior to the closing of the financing because the Company required additional cash to conduct its planned operations and to re-pay the outstanding debentures.

Longford participated in the drilling of a successful gas well in the Brazeau area of Alberta in the fourth quarter of 2007. Longford has a 49% interest in the well. The well was placed into production on February 22, 2008, and is producing at an initial rate of approximately 285 mcfd (140 mcfd net). This rate is expected to increase as operational issues with the start-up of compression equipment are resolved.

Longford also participated in a four well drilling program in December 2007 in the Lashburn area of west central Saskatchewan. All four wells were completed as oil producers. Production commenced from one well in December 2007, and from the remaining three wells in January 2008. Net production to Longford is about 19 bopd from the program. Two of the wells are currently producing from the Lloydminster formation, and the operator of the property is preparing a co-mingling application to allow for completion of the uphole Sparky formation, which is expected to further increase production rates.

The Company is pleased to announce the launch of its new corporate website. Shareholders are encouraged to visit the site at www.longfordenergyinc.com for up-to-date information on the Company.

About Longford Energy Inc.

Longford Energy Inc. is a junior Canadian oil and gas company actively pursuing the exploration and development of crude oil and natural gas opportunities.

Regulatory Statements

The use of the term "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.

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 proposed use of proceeds; the Company's operational plans, including production estimates; expected costs and revenues; corporate strategy; and the availability of acquisition opportunities. 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.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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

Contact Information

  • Longford Energy Inc.
    Ahmed Said
    President & Chief Executive Officer
    (403) 263-3000
    (403) 263-3041 (FAX)
    Website: www.longfordenergyinc.com