, ALBERTA--(Marketwire - May 29, 2012) -Longford Energy Inc. (NEX BOARD:LFD.H) ("Longford" or the "Company")announces that following a thorough internal review, the Company has determined that it will not complete a return of capital to shareholders using the proceeds from the recent sale of the Company's assets in the Kurdistan Region of Iraq (the "Sale Transaction").
The Company is actively engaged in the process of identifying prospective assets for acquisition, including global mining and oil & gas opportunities. The Company has identified oil & gas assets in Middle East, East and West Africa as well as South America and is reviewing these assets. Additionally, the Company is reviewing mining assets in Australia. There are no guarantees that a transaction will be completed in respect to these assets, however given the Company's current cash position and the prevailing capital market and economic dynamics, there are exceptional opportunities to pursue with the potential of creating significant value for shareholders, over and above what shareholders could expect to receive from a return of capital.
Mr. Ahmed Said, President and Chief Executive Officer, stated "Our cash position should give us a significant advantage in the current junior resource markets. Over the next few months we expect to identify a significant asset and recruit an experienced management team that can generate value for our shareholders".
The board of directors has formed an independent special committee, comprised of Mr. David Argyle, Mr. Peter Boot and General Jay Garner, to review potential acquisition prospects and present their recommendations to management of the Company.
Several of Longford's major shareholders have indicated that they are supportive of pursuing acquisition opportunities rather than paying a return of capital to shareholders at this time.
The Company also announces that it has appointed Mr. Peter Boot to the board of directors of Longford. Mr. Boot takes the place vacated by the Honorable Pierre Pettigrew who has resigned from the board to focus on other external board commitments.