Alpharetta, Georgia, July 15, 2014 (GLOBE NEWSWIRE) -- ("Legend", the "Company") is pleased to announce that the Company has completed the first eight wells of a proposed 24 well development drilling on its Piqua Kansas oil production property. All eight wells were drilled cased and on production as of the first week of July, 2014 despite adverse weather conditions in the month of June. Over the first seven days of new production, the Piqua property has averaged 33 BOPD. This is an increase of 24 BOPD for the property as a whole.
Due to the "on time" execution of the first part of the program, Hillair Capital Management has provided Legend with the second tranche of its total commitment of $1.0 million toward the drilling of wells at Piqua. As a result, the second group of wells has already commenced drilling with two new wells drilled and cased on the John Ellis lease. Both wells had good oil shows in the drilling mud and geological samples in the targeted Squirrel sandstone réservoir.
The positive results of wells drilled on the Orth, Bennett and Pat Collins leases, has allowed Legend to map additional Proven Undeveloped (PUD) locations, beyond the previous number of PUD's and will further expand the development inventory on the Piqua leasehold.
Marshall Diamond-Goldberg, President and CEO of Legend said: "With the capital assistance of our primary investment partner, Hillair, we have been able to finally exploit the reserve potential which we always felt was present on the Piqua property. The initial of this largest drilling program in our history, have more than met our expectations and we will continue to aggressively develop the leases with the goal of increasing production, cash flow and reserve values for the benefit of all our stakeholders."
Andrew Reckles, the Company's Chief Restructuring Officer added: "The first six weeks of the formal restructuring of Legend Oil have been better than we initially forecasted. The results in the field spearheaded by Marshall have been truly fantastic, and with the next drilling phase under way, we hope for much more. Weather permitting, it is Legend's intent to drill fourteen additional new wells this summer, many more over the fall months from cash flows, and look to stabilize our production gains by implementing a water flood program over that same period of time. I am greatly encouraged by the progress and look forward to reporting more progress to the shareholders over the coming weeks and months."
Warren Binderman, Chief Financial Officer states that "the operating results and net cash flows as a result of the drilling activities are ahead of target, and we anticipate the current momentum to be reflected in the financial statements in the next few quarters."
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.