LGX Oil + Gas Inc ROAOF

RE:RE:RE:RE:RE:RE:RE:Concerned

[zagorske]

            CANADIANBUCK:   -    If it is communication you want you should ask to speak to Mat's assistant and not Mat himself. Mat is likely swamped with calls from LEG shareholsers as well as LGX shareholders. He also is likely quite busy with year end and the current market turmoil and how it will affect 2015 CAPEX plans. Mat or Trent will never give you a staight answer anyway since they would never leave themselves committed unnecessarily. His assistant however would more likely have both the time and inclination to give you as straight an answer as possible to your questions.                                                                                                                                                           
                                                                                                                                                       
            IT DOES NOT LOOK LIKE WE WILL BE GETTING THE 5 CENT OPPORTUNITY TODAY SINCE THERE SEEMS TO BE SOME SUPPORT. MAYBE NEXT WEEK THERE WILL BE A FINAL FLUSH OUT.                                                                                                                                   
                                                                                                                                           
            So what is the opportunity here? LGX will have about $30M in debt stacked up against:  
                    1. $75M in pre-crash 2P reserve values.                                                                     
                    2. $55M in undeveloped land values.                                                                           
                    3. $X  in reserve values for recent wells drilled, but not included in last year's reserve.                                                                                                                                               
                                                                                                                                                               
            1 and 3, even if we cut the value in half are likely still worth $45M. How much have the land values changed? Not much since TOG and DTX are ecstatic about the area, we have drilled some good wells here and the Bakken play was always our bet here. Shoot cut the land values in half if you like and they are still worth $30M.                                                                    
                                                                                                                                                     
            We still have $75M in current assets measured against $30M of debt. This gives us a per share value of 50 cents even at very low valuations.                                                                       
                                                                                                                                              
            I am going to take up the 5 cent opportunity if it is offered.