Alpharetta, Georgia, Oct. 3, 2014 (GLOBE NEWSWIRE) -- On September 29, 2014, the Company and Hillair entered into an 8% Original Issue Discount Debenture for approximately $1.56 million. This debenture includes a warrant for Hillair topurchase 155,680,000 shares of Legend common stock for $.01 per share. Net proceeds from this financing were $1.3 million.
Warren Binderman, Legend's Chief Financial Officer notes that "this additional infusion by Hillair is a result of the significant accomplishments since the restructuring commenced in June 2014. In the last quarter we expended funds to drill a multitude of additional wells, significantly increased our production, acquired the Volunteer and Landers leases, and cleaned up the Company's financial statements-- placing Legend Energy Canada, Ltd., the Company's wholly owned subsidiary, into the Canadian bankruptcy Courts. Further, obtaining a release from the subsidiary's bank debt was a key component in obtaining funding from Hillair."
Andrew Reckles, Chief Executive Officer, states that "During the month of October, Legend anticipates at least 12 new wells coming on production. This new production will be from drilling programs on all three of our projects- Piqua, McCune and Landers/Volunteer. As of today, six (6) of those wells have been drilled, logged and perforated, and another deeper well has been drilled and logged. Weather and services permitting, we will have the aforementioned six (6) wells completed and on production by the end of next week, at which point we anticipate that two (2) additional deeper wells will have been drilled, logged and perforated. The deeper wells are on our newly acquired asset, the Landers and Volunteer leases and are drilling into the Bartlesville formation. We anticipate that we will begin drilling on an additional four (4) wells on either Piqua or McCune by mid month, once we've had an opportunity to assess the performance of the new wells that are scheduled to come on line next week. All in all. October is going to be a very important and very busy month for the company, and we are hopeful that we will add significant daily oil production to our current growing production base.
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 southeastern Kansas and Oklahoma.
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 2014 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, 2013 and Forms 10Q for the quarters ended March 31, 2014 and June 30, 2014. 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.
Warren Binderman (678) 595-6243