Northern, WI 9/22/2011 (PennyPayDay) – Legend Oil and Gas Ltd. (OTC:LOGL) announced yesterday, in a press release, it has signed a Letter of Intent to purchase producing oil assets in southeastern Kansas from Double 7 Oil and Gas LLC. The assets contain 29 wells, which cumulatively produced an average of 16 barrels oil per day during a 7-day test production period in August 2011. LOGL is also under an e-mail promotion campaign initiated this morning by a third party investor.There are an additional 14 water injection wells, which have yet to be put into service. The production is located on a 240-acre contiguous lease in the McCune area of southeastern Kansas.
"This acquisition will augment our existing production in Kansas and will provide the opportunity to exploit additional hydrocarbons through the completion of a water injection system. The wells and flow lines are already in place; all that is necessary to complete the water flood is a water source well and injection pump. The property can be further developed with additional infill locations and further expansion of the water flood. The reservoir is at a depth of less than 250 feet, which reduces the cost to drill additional wells. The effectiveness of water flooding to increase production has been demonstrated in many nearby analogue fields," said Legend's President, Marshall Diamond-Goldberg.
The parties are working toward the signing of a definitive agreement with closing expected to be in October, 2011.
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, northern North Dakota and Canada.
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