CALGARY, ALBERTA--(Marketwire - April 30, 2012) - Longford Energy Inc. (TSX VENTURE:LFD) ("Longford" or "the Company") is pleased to announce the closing of the previously announced transaction to sell its 40 per cent undivided interest in the Chia Surkh Block in the Kurdistan region of Iraq to Genel Energy plc (the "Sale Transaction").
As part of the Sale Transaction the Company will receive consideration of USD $68 million, of which USD $37 million cash will be paid to Longford and a total of USD $31 million will be paid directly to the Kurdistan Regional Government as settlement, including historical outstanding capacity building bonus payments, and related interest, due under the Chia Surkh Block Production Sharing Contract.
Subsequent to the closing of the Sale Transaction the Company's listing will transfer from the TSX Venture Exchange to the NEX Board of the Exchange ("NEX"). The trading symbol for the Company will change from LFD to LFD.H. There is no change in the Company's name, its CUSIP number and there will be no consolidation of capital. It is expected that Longford's securities will commence trading on the NEX on or about May 2, 2012.
The Company has started the process of identifying international oil and gas acquisition opportunities. The Board of Directors of Longford strongly believes that given the current prevailing market dynamics in the junior oil & gas sector and given the Company's current cash position, there are exceptional opportunities to pursue with the potential of creating significant value for shareholders. As a part of its strategic review, the Company expects to recruit key management personnel to assist in executing its new strategy.
About Longford Energy Inc.
Longford Energy Inc. is a junior Canadian oil and gas exploration and production company.