Kurdistan - Iraq

Chia Surkh 10, (“CS-K-10”)

Along with the joint venture partners and approval from the Kurdistan Regional Government (“KRG”), the Company has identified and finalized a drilling location for the first exploration well, Chia Surkh 10, (“CS-K-10”) on the Chia Surkh Block (“Block”). In preparation for the drilling of the CS-K-10 well the Company has ordered the long lease items, has constructed the drilling lease and is finalizing contracts required for drilling operations.

The CS-K-10 well is anticipated to be drilled to a total depth of approximately 2,400 meters, confirming the shallow Jeribe discovery drilled in 1936 and reported to have tested at 4,800 barrels of oil per day. The upcoming well has been designed as a future oil producer, and upon successful testing, the Company intends to promptly build early production facilities and bring the well online.

The Block covers approximately 985 square kilometers, in the Sulaymaniyah Governorate of the Kurdistan Region of Iraq. The Block contains a historical discovery as well as multiple exploration prospects. As at December 31, 2010, the Company had independent resource estimates updated by DeGolyer and MacNaughton Canada Limited to incorporate the recently updated seismic data. The updated resource assessment resulted in best estimated contingent reserves of 121 million barrels of oil equivalent (“MMBOE”) and prospective reserves of 218 MMBOE for a total of 339 MMBOE. This represented a 260% increase from the best estimate perspective reserves of 138 MMBOE reported for December 31, 2009.

Longford was officially appointed as the Operator of the Chia Surkh Block, during the first quarter of 2010. The acquisition of 307 kilometres of 2D seismic data was completed in October 2010. The program was designed to complement and augment existing historical seismic data, delineate a previously discovered oil reservoir known as the Chia Surkh Field, and assist in the selection of the first well location. Interpretation of the seismic data is ongoing to better define the additional surface structures identified within the Block and identify a subsequent second drill location./p>

The Block comprises three blocks, which were previously designated by the Kurdistan Regional Government as K46, K47 and K48. The Block is 985 square kilometers in size and is located southeast of the city of Sulaymania between the Diyala (Sirwan) River and the Iranian border. Apart from some mountainous areas that delineate the Iranian border, the area is generally of low relief with accessibility that Longford has deemed excellent for oil related operations. The area is mostly within the Foothill Tectonic Zone and the boundary with the High Fold Zone trends NNW along the Block‟s eastern boundary. The Foothill Zone, which is 160 km wide and characterized by long narrow anticlinal structures, contains most of the major oil fields of northern Iraq.

The Block offers both a field development opportunity and multiple exploration prospects. The existing discovery, the Chia Surkh structure, trends NW-SE and is understood to cover a surface area of approximately 42 square kilometers with exposed Miocene Injana Formation Upper Fars surrounded by Pliocene Bakhtiari Formation (Bai Hassan and Mukdadiya). A well, which was drilled by the predecessor of Anglo-Persian Oil Company in 1902, discovered oil at a depth of approximately 700 meters in a fractured limestone unit of the Lower Fars Formation. After World War II, a deeper well recovered 41º API oil from the Jeribe formation with indications that the hydrocarbon column may exceed 220 meters. The Company believes that the Chia Surkh reservoir is correlative to the fractured reservoirs in the Kor Mor field that is approximately 70 kilometers to the north-west, as well as the Asmari reservoir present in many Iranian fields. It is also believed that deeper unevaluated horizons could be prospective for oil and gas.