2009-10-28-2009-09-21

To buy various WI in 6 wells in SK and AB, gaining 45 BOE/d, 96,000 BOE 2P.

Stetson Oil & Gas Ltd., Calgary, (Toronto Venture: SSN) plans to acquire certain Canadian oil and gas properties from Longford Energy Inc., Calgary, (Toronto Venture: LFD) for C$425,000. The deal values proved and probable reserves at C$4.43 per barrel equivalent, according to Stetson. The properties are situated in the Lashburn area of Saskatchewan and the Brazeau and Alder Flats areas of Alberta. At Lashburn, Longford has working interests ranging from 16.67% to 85% in four producing oil wells that produce approximately 30 net barrels of oil per day. Stetson is currently a partner with Longford in Lashburn and operator of these wells. At Brazeau and Alder Flats, Longford owns interests of 49% and 100% respectively in two wells that have net production of approximately 15 barrels of oil equivalent per day. Total combined net production from these properties is approximately 45 barrels of oil and gas equivalent per day. Proved and probable reserves as of July 31 were 96,000 barrels of oil equivalent, according to GLJ Petroleum Consultants Ltd. Pro forma, Stetson will have production of approximately 175 barrels equivalent per day. Stetson will assume abandonment liabilities on two wells and an oil battery at Alder Flats. Stetson and Longford have two common directors, being Stan Bharti and Ahmed Said, and two common officers, being Gary Lobb and Patrick Gleeson. The sale is part of Longford's strategic plan to focus on its significant interest recently acquired in the Chia Surkh Block production-sharing contract in Iraq.