Longford Energy Inc V.LFD

IT IS A JOINT VENTURE DEAL.....

[taxdemicco]

Hello Everyone:

I am posting on both private board and here before market opens so that all can benefit.   Thanks Swisstime for understing.

There is very little information except a rumour that Genel has acquired a 40% share.   The question arises:   Did Genel acquire a 40% share with LFD keeping the 60% or, did Genel acquire 100% of the 40% share held by LFD?   Second question:  Did Genel buy LFD or the share in the PSC contract?   Third question:  What happens with capacity payments.

Chia property is rumoured to contain 308 million barrels of oil of which 40% belonged to LFD.   This means 120 million barrels of oil go to LFD.  At $ 100 per barrel of oil you are speaking of a $ 12 billion asset.   There is absolutely no way that LFD would have given away a $ 12 billion asset for $ 70 million dollars.

LFD was seeking for a JOINT VENTURE, someone with deep pockets whom could carry them to drilling and production.   They learned their lesson with Vast.    Genel wanted a full buyout, LFD refused.   The deal went to the last minute.   Genel gave in.  They agreed to pay $ 70 million to have a 40% share of what LFD holds in Chia.   This gives LFD 60% hold, or 25% of the overall property which is similar to terms held by Vast on their property.    The financing in LFD has now been done.   They have sufficient funds to drill two holes by June 2012 costing $ 25 million, they have sufficient funds to pay $ 25 million capacity payments and there is still $ 20 million left to help Vast with a loan.

LFD should become an oil producer this year fairly quickly once the two drills are completed.   This will bring in huge cash dollars as the flow rate will approximate 10,000 barrels of oil per day.    With a soaring stock price, LFD be able to get additional funds from the exercise of its warrants.    Shareholder dilution has been minimized and, potential for success has been maximized.

The deal will be announced to potential investors in London whom will flock to the LFD stock as being ridicuously cheap.   A run to the 46 cent high is possible if we rally hard for a few days.

If we caculate backwards, a 40% deal was valued at $ 70 million.   This means that a total buyout at 100% would have been valued at $ 1 per share as I had predicted.

Good Luck longs, if I read this correctly, it is very bullish news for LFD, finally we can move higher.

JMHO

[waterboy100]

Hi Tax.  After re-reading the news articles on bloomberg and Iraqi Business I think  you are reading it the same way as I am.  Genel buying 40% of LFD.  Do you really think the Big investors invested millions of dollars to make 5-10% profit off their original PP cost.  Now the question is what will the SP end up being at the end of the week.  People who bought

[taxdemicco]

Management did not walk away from their Vast holdings, they diluted a share of the property.   I know that LFD was looking for a joint venture whom had deep pockets.   They could have financed the drilling in two ways:    massive dilution or diluting the property.   The Sunday times is an English newspaper so price of $ 70 million is either pounds or U

[taxdemicco]

Book vatlue of LFD is about 30 cents per share.   Do you honestly believe that LFD would sell their portion of 308 million barrels of oil for a measily 8 cents per share and damage reputation with Soros whom could have single handily financed the project all by himself. JMHO

[alstra32]

Yes I do. He now has $70,000,000 more than what he had on Friday to move onto his next PET PROJECT.