Legend Closes Canadian Asset Acquisition
Legend Oil and Gas Ltd. has closed the previously announced acquisition of all the Canadian assets of International Sovereign Energy Corp. ("ISR") exclusive of its Marwayne, Alberta heavy oil property.
The acquisition contains a mix of oil and gas production in the Provinces of Alberta and British Columbia totaling approximately 300 BOE/d (Barrels of oil equivalent per day, with gas converted at 6:1) along with a significant amount of undeveloped mineral assets.
Legend's President, Marshall Diamond-Goldberg stated, "We are very excited to get the ISR acquisition closed as it adds significant reserves, production and cash flow to the Company, while offering very attractive and low risk drilling opportunities, which we look forward to exploiting. At Swan Hills in particular, several offsetting horizontal wells have demonstrated production potential in excess of 1,000 BOE/d. We plan to drill the first of two wells on this property in the near term."
During the period leading up to the closing, a farm-out agreement relating to two additional parcels was signed, which will see two wells drilled to test the Nisku formation at no additional cost to the Company. Legend has the right to participate up to 25% in these wells as an option.
Legend drilled three development wells and completed a fourth well over the summer on its Woodson County property in southeastern Kansas. Stable production from the property has risen from an average of 6-7 BOPD (Barrels of oil per day) prior to the completion of these wells, to over 20 BOPD. Currently, the Company is looking at an additional drilling program to be completed in November.