Legacy Oil + Gas Inc. Provides Operational Update

CALGARY, Oct. 30, 2012 /CNW/ - Legacy Oil + Gas Inc. ("Legacy" or the 
"Company")(TSX: LEG) is pleased to provide an operational update for its 
activities in the Williston Basin and most recent Turner Valley drilling 
success. 
In the third quarter of 2012, the Company drilled 46 (36.2 net) wells all 
targeting light oil, with a 100 percent success rate. This total included 18 
(14.6 net) horizontal wells in its Spearfish play at Pierson, Manitoba and 
Bottineau County, North Dakota. The Company continues to be on track to meet 
its full year production guidance. 
SPEARFISH PLAY 
At Pierson, Manitoba, the Company continues to deliver excellent production 
results in the Spearfish compared to both the previous operator's drilling and 
the type curve used in the 2011 year-end independent engineering report. 
Legacy has achieved these rates while constraining production to maximize 
ultimate recovery. All recent wells carry significant fluid levels, with 
some wells having fluid just below surface. The Company estimates that 
initial productive capability of a number of these Pierson wells would range 
from 120 to 280 Boe per day; well in excess of the currently constrained 
rates. The Company believes these achievements will lead to superior long term 
performance, higher per well reserve bookings plus additional locations booked. 
Legacy has continued to improve capital efficiencies in the Spearfish play in 
Pierson. Through a combination of reduced day rates for both drilling and 
stimulation services and improved operations execution, wells drilled in 
Pierson over the first nine months of 2012 have drill, complete, equip and 
tie-in costs of less than $1.5 million. Wells drilled in the most recent 
quarter have all-in capital costs between $1.2 million to $1.3 million. 
Average number of drilling days has been reduced from 10 days in 2011 to 6 to 
7 days in the most recent quarter. This excellent performance has been on 
"long" horizontal wells which are typically drilled across an entire 
section. Operating costs continue to be reduced as additional wells are 
tied-in to the central oil battery. Current operating costs in Pierson are 
down 35 percent in the third quarter of 2012 from the third quarter of 2011. 
At Bottineau County, North Dakota, no new operated wells were brought on 
production in the quarter however the Company anticipates having 6 (4.5 net) 
additional wells on production in the fourth quarter of 2012. The first two 
wells of this recent program have come on production at an average production 
rate of more than 150 Boe per day per well. Legacy has achieved these rates 
while constraining production to maximize ultimate recovery as all wells carry 
fluid levels. 
Legacy has also continued to improve capital efficiencies in the Spearfish 
play in Bottineau County. Through a combination of reduced day rates for 
both drilling and stimulation services and improved operations execution, 
wells drilled in Bottineau County in the last half of 2012 have drill, 
complete, equip and tie-in costs of less than $1.6 million. Wells drilled in 
the most recent quarter have all-in capital costs between $1.4 million to $1.5 
million on an all-in basis. Average number of drilling days has been reduced 
from 12 days in 2011 to 7 to 8 days in the most recent quarter. Similar to 
Pierson, this excellent performance has been on "long" horizontal wells that 
are typically drilled across an entire section. 
The total Spearfish play development drilling inventory of 440 net potential 
locations (88 percent unbooked) is based on eight wells per section. Based 
on other operators' results in the play, Legacy's location count could 
increase by 50 percent through downspacing. In addition, the Company is 
evaluating the waterflood potential in the play and anticipates recovery 
factors of up to 14 percent, based on analogous pools. 
BAKKEN PLAY 
At Star Valley, Legacy has applied its leading fracture stimulation design 
developed in Heward to this area with good success. Legacy brought 11 (7.8 
net) wells on production since the start of the third quarter of 2012 and 
these wells have average 30 day initial rates of 200 Boe per day per well. 
As previously disclosed, the Company believes the Bakken play boundaries have 
expanded and has increased its drilling location inventory to more than 50 net 
wells in Star Valley. 
At Taylorton, the Company has continued to observe improved waterflood 
response in the original pilot area. The 91/12-29 horizontal well has seen 
its oil production rate increase to nearly 50 Bbl per day, with a 
corresponding increase in fluid rate, fluid level and reduction in water 
cut. The pilot was expanded into section 28 in July 2012. Continuous 
improvement of drilling and completion practices has resulted in a reduction 
in capital costs in Taylorton, with drilling, completion, equip and tie-in 
costs for recent wells being 15 percent less than historical costs. 
At Heward, the pilot waterflood project initiated in December 2011 continues 
to demonstrate waterflood response as the oil production rate in eight 
offsetting wells has increased since the commencement of the pilot. 
Individual well oil production rates are up 50 to 500 percent from prior to 
initiation of the waterflood. Plans are underway for expansion of the pilot 
waterflood project in the latter part of 2012. 
CONVENTIONAL MISSISSIPPIAN 
Legacy has remained active drilling conventional Mississippian horizontal 
wells throughout its SE Saskatchewan properties. These wells typically cost 
approximately $1 million to drill, complete, equip and tie-in as they 
generally are not fracture stimulated and have excellent rates of return and 
quick payouts. 
At Alameda/Steelman, Legacy's recent wells targeting the Frobisher and Midale 
have achieved tremendous production results. Five of the wells drilled in 
the third quarter of 2012 have average 30 day initial production rates of 440 
Boe per day per well. The majority of these wells carry high fluid levels. 
The Company has identified a significant number of follow-up locations in both 
areas. 
TURNER VALLEY 
At Turner Valley, Legacy has continued to evolve drilling and completion 
practices to optimize both production rate and capital costs. Drilling 
to-date has targeted infill locations testing areas of varying water cut, 
reservoir pressure, proximity to water injection and three different 
stratigraphic horizons. As previously disclosed, horizontal wells in Turner 
Valley have typically come on production with a high water cut and as load 
fluid is recovered, the water cuts decrease and the oil rates increase. This 
phenomenon has been observed in the 22 previously drilled unfrac'd horizontal 
wells and in the wells drilled by Legacy. In turn, the Company expects the 
Turner Valley horizontal wells to produce at stable, low decline rates based 
on the production profile demonstrated by both the previously drilled and 
Legacy drilled wells. 
The Hartell #6 well and Boyd #1 well continue to deliver excellent 
performance. Hartell #6 has produced nearly 50 MBoe in 11 months of 
production and Boyd #1 has produced nearly 40 MBoe in six months of production 
and has averaged 250 Boe per day for the last four months. Both wells did 
not reach peak rates until considerably after first production date. 
Production has continued to trend higher on the remainder of the Turner Valley 
wells as artificial lift optimization has taken place, production run times 
have improved and recovery of load fluid has resumed. 
Legacy's most recent horizontal well at Herriman #5 is an example of the 
progression of positive production results as the Turner Valley completion 
practices are further refined. The well has increased from 100 Boe per day 
to over 300 Boe per day in its first weeks of production, while still 
producing at approximately 70 percent water cut and carrying a high fluid 
level. Offset producers have water cuts between 16 and 45 percent and it is 
anticipated Herriman #5 will continue to trend lower in water cut and higher 
in oil rate. 
The Company has made great strides in reducing capital costs since the end of 
2011/early 2012. With an ongoing program, refinement of mud programs and bit 
selection, Legacy continues to improve its drilling performance in Turner 
Valley, leading to decreased capital costs. The recent dual lateral horizontal 
wells have cost approximately $6 million for drilling, completion, equip and 
tie-in, driving much improved capital efficiencies. Legacy believes there is 
potential for additional capital cost reductions on future wells. 
SUMMARY 
Operational momentum that began in late 2011 has continued through 2012. 
Legacy continues to deliver solid production growth with improved capital 
efficiencies from its extensive inventory of 1,200 net light oil development 
locations and waterflood assets. The Company plans to release its third 
quarter 2012 results on November 8, 2012 and has scheduled a conference call 
to discuss the results on Friday, November 9, 2012 at 9:00 a.m. (MDT) (11:00 
a.m. EDT). 
Legacy is a uniquely positioned, technically driven intermediate oil and 
natural gas company with a proven management team committed to aggressive, 
cost-effective growth of light oil reserves and production in large 
hydrocarbon in-place assets and resource plays. Legacy's common shares trade 
on the TSX under the symbol LEG. 
Forward-Looking Information - This press release contains forward-looking 
statements. More particularly, this press release contains forward-looking 
statements concerning: (i) the Company being on track to meet its full year 
production guidance, (ii) the initial productive capability of wells drilled 
at Pierson, (iii) the Company's belief that the recent performance of wells at 
Pierson will lead to superior long term performance and higher per well 
reserves bookings, (iv) the number of identified drilling locations at 
Pierson, (v) anticipated improvements in operating costs at Pierson, (vi) the 
initial productive capability of wells drilled at Bottineau County, (vii) the 
Company's belief that the recent performance of wells at Bottineau County will 
lead to superior long term performance and higher per well reserves bookings, 
(viii) the number of identified drilling locations at Bottineau County, (ix) 
the total number of potential drilling locations in the Company's Spearfish 
play, * anticipated recovery factors in the Spearfish play, (xi) the Company's 
plans to expand its waterflood project at Taylorton and the potential impact 
on reserves bookings and decline rates, (xii) the number of identified 
drilling locations at Star Valley, and (xiii) the Company's expectations as to 
the production characteristics of horizontal wells at Turner Valley. 
The forward-looking statements contained in this press release are based on 
certain key expectations and assumptions made by Legacy, including 
expectations and assumptions concerning: (i) the success of future drilling 
and development activities, (ii) the performance of existing wells, (iii) the 
performance of new wells, (iv) the availability and performance of facilities, 
(v) the geological characteristics of Legacy's properties, (vi) the successful 
application of drilling, completion and seismic technology, (vii) prevailing 
weather conditions, commodity prices, royalty regimes and exchange rates, 
(viii) the application of regulatory and licensing requirements and (ix) the 
availability of capital, labour and services. 
Although Legacy believes that the expectations and assumptions on which the 
forward-looking statements are based are reasonable, undue reliance should not 
be placed on the forward-looking statements because Legacy can give no 
assurance that they will prove to be correct. Since forward-looking statements 
address future events and conditions, by their very nature they involve 
inherent risks and uncertainties. Actual results could differ materially from 
those currently anticipated due to a number of factors and risks. These 
include, but are not limited to, risks associated with the oil and gas 
industry in general (which include operational risks in development, 
exploration and production; risk that there will be delays or changes in plans 
with respect to exploration or development projects or capital expenditures; 
the uncertainty of reserve estimates; the uncertainty of estimates and 
projections relating to production, costs and expenses; the uncertainty of 
well performance; and health, safety and environmental risks), uncertainty as 
to weather conditions, uncertainty as to the availability of labour and 
services, commodity price and exchange rate fluctuations and changes to 
existing laws and regulations. These and other risks are set out in more 
detail in Legacy's Annual Information Form which has been filed on SEDAR and 
can be accessed at www.sedar.com. 
The forward-looking statements contained in this press release are made as of 
the date hereof and Legacy undertakes no obligation to update publicly or 
revise any forward-looking statements or information, whether as a result of 
new information, future events or otherwise, unless so required by applicable 
securities laws. 
Meaning of Boe: When used in this press release, Boe means a barrel of oil 
equivalent on the basis of 1 Boe to 6 thousand cubic feet of natural gas. Boe 
per day means a barrel of oil equivalent per day. Boe's may be misleading, 
particularly if used in isolation. A Boe conversion ratio of 1 Boe for 6 
thousand cubic feet of natural gas is based on an energy equivalency 
conversion method primarily applicable at the burner tip and does not 
represent a value equivalency at the wellhead. 
Please contact: 
Trent J. Yanko, P.Eng. President + CEO 
Legacy Oil + Gas Inc. 4400, 525 - 8th Avenue S.W. Calgary, AB T2P 1G1 
Telephone: 403.441.2300 Fax: 403.441.2017  
Matt Janisch, P.Eng. Vice-President, Finance + CFO 
Legacy Oil + Gas Inc. 4400, 525 - 8th Avenue S.W. Calgary, AB T2P 1G1 
Telephone: 403.441.2300 Fax: 403.441.2017  
SOURCE: Legacy Oil + Gas Inc. 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/October2012/30/c3411.html 
CO: Legacy Oil + Gas Inc.
ST: Alberta
NI: OIL  
-0- Oct/30/2012 21:54 GMT