Longford Energy Inc V.LFD

love the steady gains

[bigtime333]

.Recent Update Text as of 5APR10 We have initiated coverage on the common shares of Longford Energy Inc. with a

2-Sector Perform rating and a one-year target price of
.45 per share (based

.on our risked NAV analysis). As a Kurdistan exploration pure play, Longford’s most visible catalyst remains

its first exploration well on the Chia Surkh Block, which could spud as early

.as Q4/10, with results expected three to four months thereafter. Overall, we characterize Longford as offering reasonable prospectivity in the

context of current gross OOIP (P50) estimates of >660 mmbbl and a slightly

lower exploration risk profile given the nine wells drilled and discovered oil

on the main Chia Surkh structure. Of note, the No. 7 well (1952) flowed at

.nearly 5,000 bbl/d from the Jeribe (Tertiary). Our NAV analysis for Longford assumes a 40% interest in the Chia Surkh Block

that implies an unrisked NAV of $1.60 per share (
.43 per share risked),

highly contingent on the company s ability to raise additional capital and

exploration success.

Gavin Wylie [phone] (Scotia Capital Inc. - Canada)