ALPHARETTA, G.A., Aug. 20, 2014 (GLOBE NEWSWIRE) -- Legend Oil and Gas Ltd. (OTC Markets: LOGL) ("Legend",
the "Company") is pleased to announce that Legend and
National Bank of Canada ("NBC") have signed a mutual release and
settlement agreement (the "Agreement"). NBC is the Senior
lender for the company's sole wholly owned Canadian subsidiary,
Legend Energy Canada, LTD ("Legend Canada").
Under the terms of the Agreement, Legend Oil and Gas, Ltd
("Legend") is released and discharged by NBC of any and all
obligations under NBC's general security agreement dated May 11,
2012, the letter of guarantee, dated May 11, 2012, and the letter
of financing entered into on July 17, 2012. Further, and
critical to the restructuring of Legend, NBC released its security
interests held in any and all assets of Legend Oil and Gas, Ltd.
("Legend"). Legend paid consideration to NBC of CDN$250,000
for these mutual releases.
Andrew Reckles, Legend's Chief Restructuring Officer states that
"when the restructuring of Legend began, one of the most urgent
orders of business was to work with all of our financing partners
to remedy Legend's existing defaults under its various debt
instruments and to create a financial platform from which to
grow. With this settlement executed, Legend is now able to
put its sole focus on growing its U.S. based oil and gas assets and
continuing to build on the Mid-Continent drilling and acquisition
thesis that is currently underway. We appreciate both, NBC's
cooperation, working with us to settle this overlying matter, and
our US based financial partners, for continuing to support our
restructuring and growth efforts".
Chief Financial Officer, Warren Binderman, states that "this
resolution allows us to further expand the Company's operations and
financial platform, such that we expect to have better access to
the capital markets, through banks and potential investors.
Further, this settlement allows us to simplify our financial
processes while continuing to streamline our operating cost
structure and related cash outlays, such that our funds can be
spent on drilling and acquisition of oil and gas properties giving
us expected returns on investment."
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.
Forward-looking Statements:
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
Form 10Q for the quarter ended March 31, 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.
CONTACT: Andrew Reckles
770-861-1643
