LGX Oil + Gas Inc ROAOF

RE:RE:annonymous sell sold millions in the last couple weeks

[nlr2]

Anyone who has knows Mr. Yanko knows he is more than capable of talking up a company on his own. He proved this again at the EPAC Oil & Gas Investor Showcase last week in Calgary during a presentation on his other promotion, LGX Oil + Gas Inc. (OIL), down half a cent to 49.5 cents. Legacy owns 16 million shares of and shares staff with LGX, including Mr. Yanko as president and CEO. Because of Legacy's influence, said Mr. Yanko, LGX can "punch well above its weight" because it is "able to bring to bear all the best" in drilling and other technologies. Even though LGX is producing only 1,000 barrels a day, institutional investors are looking at it because they are looking at Legacy, claimed Mr. Yanko. Most of LGX's production is coming from its Manyberries project and its Alberta Bakken assets. Vertical wells at Manyberries are simple, shallow and cheap -- about $700,000 -- so they provide cash flow for Bakken development. Although work is restricted during the spring mating season of the protected sage grouse, Mr. Yanko says this has not really affected day-to-day operations because LGX can still fix wells or convert them to water injectors (for waterflooding). He added that the company may try drilling higher-cost but higher-potential horizontal wells soon. LGX is more excited about the Alberta Bakken. In the Blood reserve area, it drilled two wells last year, one of which was so good (producing 445 barrels a day in its first 60 days) that LGX plans to drill two offsets this year. That well was also interesting because even though it targeted the Big Valley formation, it was (by design) uncased in the Banff formation, from which it received a "very big [oil] kick." (The results are similar to what TORC Oil & Gas Ltd. (TOG: $15.16) has found just north of LGX.) Mr. Yanko said he is excited about the Banff and the Alberta Bakken in general, which he thinks could become as popular as the U.S. or the Saskatchewan Bakken. He predicted that LGX "could look completely different by the end of this year."