Alpharetta, Georgia, Sept. 26, 2014 (GLOBE NEWSWIRE) -- Legend Oil and Gas Ltd. (OTC Markets: LOGL)
("Legend", the "Company") announced that on September 19, 2014,
Legend Oil and Gas, Ltd. (the "Company" or "Legend") has placed its
wholly owned subsidiary, Legend Energy Canada, Ltd. (a Canadian
company, "LEC"), into an Assignment for the General Benefit of
Creditors in the Court of Queen's Bench in Bankruptcy and
Insolvency, Province of Alberta, Canada, for relief under the
Bankruptcy and Insolvency Act of Canada. It has named KPMG,
Inc. of Canada as the Trustee.
"We have proceeded in a strategic manner to place LEC into
bankruptcy. LEC's assets historically did not produce the
operating or financial results that Legend's prior management team
had anticipated, which significantly encumbered both LEC and
Legend, as LEC's parent company. Further, the majority of the
assets were taken into receivership by the National Bank of Canada
in April of 2014, leaving the balance sheet at LEC with essentially
nothing but liabilities." stated Chief Financial Officer, Warren
Binderman. "The process we followed to place LEC into bankruptcy
commenced with Legend negotiating and obtaining a full
release earlier this quarter, of all Legend's obligations under
certain bank debt LEC incurred with the National Bank of Canada
("NBC"). This full release gives Legend the flexibility and
ability to move forward, unencumbered by these obligations which
had been hanging over our heads, and limiting our ability to obtain
further funding to enhance operations."
Further, Binderman states, "while it is unfortunate to place any
entity into bankruptcy, we firmly believe this action is in the
best interest of our shareholders and many stakeholders. We
are now fully able to clean up our balance sheet by writing off
LEC's liabilities from the consolidated financial statements, which
will result in a gain on debt forgiveness during the third quarter
of 2014."
Andrew Reckles, Chief Restructuring Officer notes "over the past
several months we have seen the results of our drilling
programs come to fruition. The LEC bankruptcy accomplishes
many things for Legend, foremost among them is unencumbering the
Company from an albatross that has been hanging around our necks
for some time, limiting certain potential credit facilities and
capital providers from working with us, and allowing us to seek and
implement more traditional, lower cost financing solutions for our
continuing growth plans in Kansas and other areas in the
mid-continent. This step firmly allows us to move forward
with our restructuring in an efficient and streamlined way to
positively benefit the shareholders and stakeholders of
Legend."
Reckles continued "Marshall Diamond-Goldberg, our current CEO,
has been on the ground, in Kansas, ensuring our drilling program
continues to produce the results needed, and we have seen the
fruits of that labor. In June, at the beginning of the
restructuring total combined production at Legend was approximately
8 BOPD, but as of the end of September Legend has combined total
daily production of over five times that number, and growing.
His contributions to this effort have been immeasurable."
Binderman stated "this puts closure to a matter that has been
hindering our go-forward abilities, and the entire executive team
is quite happy to have transitioned LEC out of the Company and into
the capable hands of KPMG, Inc. as Trustee."
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: Warren Binderman
(678) 595-6243
