Legacy Oil had a leg up on the market yesterday, after announcing that it completed a successful drilling programbetween late November 2009 and early January 2010, consisting of 18 (15.5 net) oil wells with a 100% success rate. Given the
strong drill results, the company was able to exceed its 2009 year-end guidance of 5,750 boe/d. An operational update with
details regarding the successful drilling campaign will be released in the near-term. For 2010, Legacy plans a capital budget of
$117 million, which includes spending $89 million on drilling 76 gross (58.7 net) wells, $7 million on facilities and $21 million
primarily on land and seismic. More specifically, the company is targeting light oil primarily at Taylorton (11.3 net wells),
Antler/Frys (8 net wells), Heward/Stoughton (7.5 net wells) and Edenvale/Nottingham (5.2 net wells). While no capital was
budgeted in 2010 for acquisitions, the company continues to evaluate new opportunities – both within and beyond its core are of
southeast Saskatchewan. Based on this capital program, Legacy is projecting 2010 average production of more than 6,500 boe/d
(97% oil) with 2010 exit production of 7,250 boe/d (increase of 26% from 2009 exit). The next catalyst for the stock is expected
to be operational announcements from its drilling program.