Source: Legend Oil and Gas, Ltd.
Alpharetta, July 7, 2015 (GLOBE NEWSWIRE) -- As we move into the third quarter of fiscal 2015, the Company's Board of Directors wanted to give some visibility into the most current happenings and events at Legend.
Our press releases and public filings clearly depict that the first two quarters of 2015 have been eventful, to say the least. At the beginning of the year, we were deep in the midst of our restructuring plan and working hard stabilizing production on several of the Company's oil and gas assets in Southeastern Kansas. That work was completed, and as our public filings indicate, those assets (Piqua and McCune) were both sold in the first quarter of 2015. The proceeds helped to pay down debt and accrued interest on our balance sheet, which reduced our interest due for the balance of 2015.
To jump start our work in the 2nd quarter of 2015, we closed on our acquisition of Maxxon Energy, a last mile oil hauling/trucking company in North Dakota (The Bakken). The acquisition and subsequent integration continue, as we work with the Maxxon team to work to increase revenue and reduce costs without giving up quality of service to our customer base.
Maxxon's 2014 audited revenues were $9,383,872.00 with EBITDA at just under $1,280,000.00. The first half of 2015 (unaudited) has been strong for Maxxon (compared to the 2014 same period), even with the volatility the market has seen in oil prices. Total barrels hauled in the first half of 2015 were approximately 1.4 million which represents an increase of approximately 22% over the same six month period in 2014 (unaudited). Oil hauling revenue was approximately 7.3% higher than the same six month period of 2014, at approximately $4.6 million (unaudited). The Board of Directors and Management of the consolidated company is encouraged by these metrics, and will give further updates as time goes on and as we integrate the companies further.
The first week of the third quarter, beginning July 1, 2015, has been relatively slow on the oil hauling side. However, we continue dialogue with our customers and they have assured us that our volumes should begin to increase beyond historical levels through the latter half of July 2015, continuing through at least the end of calendar 2015. Company management is also in very late stage contractual/commitment discussions with one of the five (5) largest producers in "The Bakken" to begin transporting oil for them later this summer. While we cannot be assured that volumes will increase or that the commitment/contractual discussions will yield the results we hope for, the Board and management are confident enough that we acquired six (6) new trucks and leased an additional seven (7) oil tankers/trailers, in an effort to insure that we are equipped to meet the projected and anticipated new hauling volumes.
The oil exploration and production side of our Company has focused 100% of its current efforts building the production base on the Lander/Volunteer leases. During the second quarter, which was mired with very difficult weather in April and early May, the Company drilled, completed, and received final approval on a new water disposal well. This has allowed us to expand on the Lander lease and begin working over many of the wells on the Volunteer lease as well. The Lander #8 well, by example, was completed and began production late last week and is already showing approximately 10-11 BOPD of new production. The Company anticipates that it will drill several more wells on the Lander lease, and is in discussion with the leaseholder on our southern border about acquiring his lease. The Lander lease has a well defined Bartlesville channel that runs right through its middle and indications are, based upon production on the contiguous lease, that it continues to run quite nicely beyond our lease lines. It is our hope that we will come to an agreement with the leaseholder this quarter and acquire the lease on our southern border before the end of the summer.
The Board of Directors continues to work with its management, leadership, customers, stakeholders and others to continue the momentum that was built in the first and second quarters of 2015. We are hopeful that the operating results for the balance of 2015 and beyond will meet and exceed all expectations. With that, The Board of Directors would like to thank ALL of our team members, shareholders and stakeholders, as we all work diligently to grow the Company.
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.We are also, through our wholly owned subsidiary, Black Diamond Energy Holdings (dba "Maxxon Energy"), a last mile oil trucking/hauling company in North Dakota (the Bakken).
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 2015 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, 2014 and Form 10-Q for the quarter ended April 30, 2015. 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.
Warren Binderman President and CFO