Alpharetta, Georgia, Nov. 19, 2014 (GLOBE NEWSWIRE) -- The Legend Oil and Gas, Ltd.(LOGL) ("Company") quarterly report
at September 30, 2014, continues to indicate many items that
reflect the corporate restructuring which began in June of this
year. Legend continued to expand its drilling programs at
Piqua, McCune and the newly acquired Volunteer/Landers oil and gas
properties, which are expected to show increased production results
in the coming quarters.
Warren Binderman, Legend's Chief Financial Officer noted that
"Legend made significant strides in the 3rd quarter vs.
the 2nd quarter, with oil and gas revenue increasing to
almost a double over the prior quarter to $218,000. We also
progressed to showing net income for the quarter ended September
30, 2014 of approximately $306,000, compared with a net loss of
$1.73 million for the same quarter last year- a net change of
approximately $2 million to the positive. Further, for the nine
months ended September 30, 2014, we decreased our total net loss by
nearly $3.5 million, from $4.9 million to $1.4 million
demonstrating the significant and positive changes that began in
June and continue today as we press forward with the
restructuring plan."
Binderman continued "during this quarter, as a result of the
bankruptcy and deconsolidation of Legend Energy Canada, we incurred
a noncash gain on discontinued operations of approximately $3.3
million. Offsetting those noncash revenues were certain
noncash general and administrative expenses related to changes in
embedded derivatives of approximately $1.9 million, and an
impairment of oil and gas properties of approximately
$152,000. Further noncash expenses in our statement of
operations were interest expense of $266,000, a loss on conversion
of debt of $63,000, depletion, depreciation and amortization costs
of $64,000 and a change in value on the derivative computation
related to warrants of $231,000. We also had a one-time
charge of approximately $250,000, related to the Canadian
Bankruptcy Trustee and legal fees paid as a result of the Canadian
bankruptcy filing and liquidation. Noncash costs in the
quarter approximate $2.6 million, with one time cash charges of
approximately $250,000. We are comforted by this quarter's
results, and look forward to maintaining our momentum as we get
deeper into our operating thesis, with the past issues from prior
periods getting further behind us."
Binderman continued "subsequent to the end of
this quarter, literally just last week, on November 13, 2014,
Legend and Hillair Capital Investments, L.P. ("Hillair") entered
into a debt and warrant restructuring to simplify the various
tranches of debt infused by Hillair since June of 2013.
All existing debt outstanding and owned by Hillair, as
described in prior Current Reports on Form 8-K were restructured
and consolidated into one new debenture. All conversion and
amortization features have been removed, resulting in a new, single
senior secured debenture, with a total amount due Hillair of $6
million plus annual interest of 8.5% due and payable in one payment
on March 1, 2016. Further, in exchange for the 600,000,000 warrants
to purchase shares of the Company's common stock held by Hillair,
Hillair agreed to purchase 600 shares of convertible
preferred stock with a value $1,000 each for a total purchase price
of $600,000. This convertible, perpetual preferred stock has a 0%
dividend rate, is and will be classified as equity in future
financial statements, and is in exchange for any and all
outstanding warrants and conversion features included in prior
debentures. The shares of preferred stock are convertible into 600
million shares of the Company¹s common stock at $0.001 per
share. We appreciate the confidence Hillair has placed in our
management team and business platform. This capital infusion
gives us further flexibility to continue our successful execution
of our exploration and drilling programs."
Andrew Reckles, Chief Executive Officer stated, "This was a very
busy quarter for the company across all areas. From drilling
approximately 15 wells on our KS properties to the formal
bankruptcy of the Canadian Subsidiary to acquiring a producing Oil
and Gas property in Kansas, the management team of the company has
worked hard to continue the restructuring that began in June. As of
the release of this 10Q, the Company is producing approximately 60
BOPD from its three projects in KS, up from less than 9 BOPD in
June. We are also under PSA (purchase and sale agreement) for
another acquisition in Northern Oklahoma, which we expect to close
in December."
Reckles added, "There is still plenty of work to do; this
restructuring is far from over and will probably continue until the
middle of 2015, but, I am extremely encouraged by the production
growth and the ever improving financial picture at the
Company."
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 S. Binderman
Chief Financial Officer
(678)595-6243
