SOURCE: Legend Oil and Gas Ltd.
SEATTLE, WA--(Marketwired - Dec 3, 2013) - Legend Oil and Gas Ltd. (OTCQB: LOGL) ("Legend", the "Company") is pleased to announce that the Company has closed the purchase of an oil producing property near the town of McCune in Crawford County Kansas. The property consists of six nearly contiguous leases in the McCune oil field. The asset is partially developed with a number of shallow oil and water injection wells currently producing 7 barrels of oil per day (BOPD).
Marshall Diamond-Goldberg, President of Legend Oil and Gas, Ltd., stated, "The McCune acquisition is a strategic addition to our Kansas asset portfolio and was negotiated at a very attractive price relative to many of the deals we have seen in the past six months. Legend will be acquiring the property for a combination of common shares and cash totaling approximately $50,000 per flowing barrel, and less than three times current cash flow."
Due diligence included a full title review as well as environmental assessment. Identified liabilities are to be born solely by the seller and are outlined in detail in the Purchase Agreement. The addition of the McCune asset will initially increase our average Kansas production by 30% to approximately 26 BOPD.
Northpoint Energy Partners of Atlanta, GA acted as Legend's advisor on this transaction.
About Legend Oil and Gas Ltd.
Legend Oil and Gas Ltd. is a managed risk, oil and gas exploration/exploitation, development and production company with activities currently focused on leases in Canada, southeastern Kansas and northern North Dakota.
This press release contains forward-looking statements concerning future events and the Company's growth and business strategy. Words such as "expects," "will," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Forward looking statements in this press release include statements about our drilling development program. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the timing and results of our 2013 drilling and development plan. Additional factors include increased expenses or unanticipated difficulties in drilling wells, actual production being less than our development tests, changes in the Company's business; competitive factors in the market(s) in which the Company operates; risks associated with oil and gas operations in the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission including the Company's Annual Report on Form 10-K for the year ended December 31, 2012 and Form 10Q for the quarter ended June 30, 2013. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable," "possible," "recoverable" or "potential" reserves among others, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our filings with the SEC.