Palm Beach, FL 12/19/11 (StreetBeat) – Legend Oil and Gas Ltd. (OTCBB: LOGL) is pleased to announce it has permitted three new locations on its Woodson County, Kansas properties. Two wells will be drilled on the John Ellis lease with an additional location drilled on the Orth-Gillespie lease. Production more than tripled on the Orth-Gillespie lease due to the drilling of three new locations in June and July of this year. John Ellis production increased two-fold with the re-completion of an existing well. The two additional locations in the new program are expected to further enhance the John Ellis production."While Kansas production rates are low by industry standards (1-3 BOPD per well), the wells are extremely shallow, cost less than $30,000 each to bring into production and are economically positive, especially at oil prices near $100 per barrel," said Legend's President, Marshall Diamond-Goldberg . "With a land holding of over 1,000 acres and well spacing of 2.5 acres, there are a significant number of low-risk locations yet to be drilled, and the production enhancement potential of water flooding the properties for greater recovery is considerable."
In Canada , the Company continues to identify new opportunities on the International Sovereign Energy Corp. ("ISEC") asset acquisition, which closed in October. "These assets are mostly low-decline, stable production assets with several properties having significant development potential," said the Company's President. "We are in the process of completing the acquisition of surface approval, which will be followed by the licensing of our first well at Swan Hills. It is expected that the license will be received in early January. Once received, we will prepare to drill our first horizontal well there. Production potential, based upon the offsetting wells drilled by Coral Hill , is anticipated at 100-200 BOPD net to the Company's interest."
A farm-out agreement has been reached in the Swan Hills area with a third party to drill two vertical Nisku formation tests searching for light oil. The Company retains the right to participate in these exploratory wells up to a 25% interest. There are a number of Nisku pools in the vicinity of these test locations. The first well is expected to spud in February 2012 .
Legend is also conducting operations at its Joffre property and is looking to move forward on a lease acquisition at Medicine River in order to return a previously drilled horizontal well to production.
Corporate Governance
Currently, Legend has two members on its Board of Directors. It is the intention of the principals to have a fully independent Board which is in line with the Company's Code of Ethics and fundamental to its Corporate Governance Policy. To that end, a number of candidates have been identified with the expectation these Board seats be held by individuals who will add valuable insight and be suitable to serve on the reserve, audit, and compensation committees. Management expects a fully independent Board to be in place by early 2012.
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