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Longford Energy Inc V.LFD



TSXV:LFD - Post by User

Comment by HHdocon Feb 23, 2012 1:24pm
319 Views
Post# 19574395

RE: RE: Internet voting is closed.............

RE: RE: Internet voting is closed.............

Are Management Group a bunch of crooks?

 

Personally, I dont think so. With such a favorable deal to themselves, why take the extra risk when surely any outcome will be scrutinized closely by shareholders and SEC.

 

Certainly, there is no doubt that this project has been mismanaged from the outset. You have to wonder why the Forbes Group would place this project with Longford when the same management was already dealing with the Qara Dagh block next door. Was this arrangement simply to maximize management compensation and for the ability to publish confusing statements wherein, considered individually, management compensation seemed quite reasonable?

 

Management interests have not been perfectly aligned with shareholder interests. It must have been obvious to management in the spring 2011 that the company would not be able to meet its drilling committments, and yet the Genel deal was not finalized until time and any hope of alternate offers had expired. Being fully aware of the largesse of their termination contracts, their main interest was likely to ensure sufficienrt cash in the till to reap these rewards. Consequently, a deal was put to the shareholders with a tiny 10 cent dividend carrot or the immeditae loss of the block for no compensation. The kicker being that we do not get the dividend unless management collect on their exit bonuses!

 

I really do not know how this will turn out and I think shareholder options are limited. After results are announced, I think the SEC and independant directors should be bombarded with complaints. Among other things, we can complain about excessive management take, misleading corporate pr which in hindsight misled shareholders, failure of management to meet corporate obligations pursuant to terms of psc, numerous questions about accounting and audit of $65 million company funds. I am sure much more can be added to this list. It appears that management placed their interests much above the shareholders.

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