Alpharetta, GA, May 21, 2015 (GLOBE NEWSWIRE) -- Legend Oil and Gas, Ltd. ("Legend" or the "Company") is
pleased to announce the filing of our March 31, 2015 quarterly
financial report.
The Company's quarterly report indicates many items which
reflect the continued corporate restructuring that launched in
mid-2014, as well as acquisition related items previously disclosed
in Legend's Form 8-Ks.
Warren Binderman, Legend's President and Chief Financial
Officer, notes that we had a significant loss during this quarter
of approximately $8.9 million. However, he states, "when you
break down the loss into its salient components, we incurred the
following noncash items:
- Noncash charge of approximately $6.6 million for the mark to
market value of embedded derivatives liabilities that resulted from
the value of Hillair's conversion of preferred stock to common
shares on May 2015,
- Loss of approximately $892,000 on the sale of oil and gas
properties resulting from the sales of our Piqua and McCune
properties,
- Impairment of our Van Pelt property of approximately $407,000,
to a net realizable value of $50,000, and
- One time type legal and accounting transaction fees
approximating $100,000, as a result of our acquisition of Black
Diamond Energy/Maxxon.
These charges to Legend, which total approximately $8 million
out of our $8.9 million net loss, were to a large part, one-time
acquisition related costs, or GAAP related computation
requirements.
Effective April 3, 2015, we closed on the acquisition of Black
Diamond/Maxxon Energy. This acquisition brings us deeper into
the oil services platform, with a wholly owned subsidiary that
performs last mile hauling of oil in North Dakota (the
"Bakken"). We expect that the second quarter will paint a
much different picture of the consolidated companies, including our
consolidated balance sheet, statement of operations and cash
flows."
Andrew Reckles, Chairman and Chief Executive Officer states that
"This quarter was not what I had hoped to see from our Oil and Gas
Operations. Unfortunately our foray into Oklahoma; the Van
Pelt lease, did not yield results of any material economic success.
We as a Board felt it prudent to cease continued capital expense on
this field and write the property down to what we feel is an
appropriate recoverable land value. We wish it were
different, but the facts are, after drilling several new wells and
re-working several others, the production we have seen does not
merit keeping the lease operational nor does it merit doing
anything other than shutting the property in during the second
quarter. On a much brighter note, our acquisition of Maxxon
Energy is transitioning nicely along all fronts; technology
integration, management integration, financial back office
integration and other corporate matters. Maxxon has performed
well since we closed the acquisition, with, unaudited revenue since
closing of approximately $1.3mm. We continue to grow the
fleet of trucks and trailers there, and we, as a company look
forward to reporting our first consolidated quarter of operations
in August of this year."
About Legend Oil and Gas Ltd.
Legend Oil and Gas Ltd. is both a managed risk,
oil and gas exploration/exploitation, development and production
company with activities currently focused on leases in southeastern
Kansas, as well as a last mile hauler of oil in the Bakken (North
Dakota).
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
President and
Chief Financial Officer
(678) 366-4587
