LGX Oil + Gas Inc. announces its financial and operational results for the three and nine months ended September 30, 2012

LGX Oil + Gas Inc. announces its financial and operational results for the 
three and nine months ended September 30, 2012 
CALGARY, Nov. 8, 2012 /CNW/ - LGX Oil + Gas Inc. ("LGX" or the "Company") 
announces its financial and operational results for the three and nine months 
ended September 30, 2012. 
The Company will file its unaudited Financial Statements and related 
Management Discussion and Analysis ("MD & A") for the three and nine months 
ended September 30, 2012 with the Canadian securities regulatory authorities 
on SEDAR. An electronic copy of these materials will be available under 
LGX's issuer profile on SEDAR at www.sedar.com and on the Company's website at 
www.lgxoil.com. 
FINANCIAL + OPERATIONAL HIGHLIGHTS ((1)) 
Financial + Operational Highlights below present the historic financial 
position, results of operations and cash flows of Legacy Oil + Gas Inc.'s 
Southern Alberta Assets ("SA Assets") for all prior periods up to and 
including July 5, 2012 and the results of operations from July 5, 2012 forward 
to include both the SA Assets and LGX Oil + Gas Inc. (referred to collectively 
with its subsidiaries as "LGX" or the "Company"), unless otherwise 
indicated. For a comparisons to prior periods of Bowood Energy Inc., refer 
to page 12 of the MD&A of LGX Oil + Gas Inc. for the third quarter of 2012. 
                  Three Months Ended                 Nine Months Ended          
                        September 30                      September 30          
Unaudited (Cdn
$, except per                                    %                                %
share amounts)          2012        2011    change        2012        2011   change 
Financial                                                                           
Petroleum and
natural gas                                                                 
sales, net of
royalties            864,621           -       n/a   1,270,804           -      n/a 
Funds generated
by (used in)             ( )                               ( )              
operations ((2))   (345,347)    (15,028)   (2,198)   (138,445)    (52,595)    (163) 
Per share                          n/a                               n/a      n/a
  basic               (0.01)                   n/a      (0.02)               
Per share                          n/a                               n/a      n/a
  diluted ((3))       (0.01)                   n/a      (0.02)               
Net income                                                                  
(loss)           10,254,593    (100,863)    10,267  10,442,354 (1,977,892)      628 
Per share                          n/a                               n/a      n/a
  basic                 0.38                   n/a        1.16               
Per share                          n/a                               n/a      n/a
  diluted ((3))         0.38                   n/a        1.16               
Capital
expenditures                                                                
(excluding
acquisitions)      1,410,996   7,629,923      (82)   2,556,717  17,414,474     (85) 
Net debt and
working capital                                                             
surplus                                                                   
(deficit)( (2))  (5,043,920) (3,796,297)      (33) (5,043,920) (3,796,297)     (33) 
Operating                                                                           
Production                                                                          
Crude oil and
  natural gas                          -                                 -      n/a
  liquids (Bbls
  per day)                95                   n/a          50               
Natural gas                          -                                 -      n/a
  (Mcf per day)        1,939                   n/a         651               
Barrels of oil
  equivalent                         n/a                               n/a      n/a
  (Boe per day)
  ((4))                  418                   n/a         158               
Average realized                                                            
price                                                                               
Crude oil and
  natural gas                          -                                 -      n/a
  liquids ($ per
  Bbl)                 75.46                   n/a       80.61               
Natural gas ($                       -                                 -      n/a
  per Mcf)              2.19                   n/a        2.19               
Barrels of oil
  equivalent ($                      n/a                              n/a       n/a
  per Boe) (
  (4))                 27.32                   n/a       34.55               
Netback ($ per                                                              
Boe)( (2))                                                                          
Petroleum and
  natural gas                          -                                -       n/a
  sales                27.32                   n/a       34.55               
Royalties             4.84           -       n/a        5.19          -       n/a 
Operating                            -                                -       n/a
  expenses             12.06                   n/a       14.76               
Transportation                       -                                -       n/a
  expenses              1.11                   n/a        1.25               
Operating
Netback ($ per                                                              
Boe)( (2))              9.31        n/a        n/a       13.35         n/a      n/a 
Undeveloped land
holdings                                                                     
         
(gross acres)        217,334      88,405       146     217,334      88,405      146 


    (net acres)       184,165      62,624       194     184,165      62,624      194

Common Shares                                                               
(000's)                                                                            

Common shares
outstanding, end                                                            
of period             30,279           -       n/a      30,279           -      n/a

Weighted average
common shares                                                               
(basic)               26,887           -       n/a       9,028           -      n/a

Weighted average
common shares                                                               
(diluted) ((3))       26,887           -       n/a       9,028           -      n/a

(1)      The reader is cautioned that the Financial + Operational
         Highlights above present the historic financial position,
         results of operations and cash flows of Legacy Oil + Gas
         Inc.'s Southern Alberta Assets ("SA Assets") for all prior
         periods up to and including July 5, 2012 and the results of
         operations from July 5, 2012 forward include both the SA
         Assets and LGX Oil + Gas Inc. (referred to collectively with
         its subsidiaries as "LGX" or the "Company"), unless otherwise
         indicated.  Refer to the common-control transaction and
         reverse acquisition in the Management's Discussion and
         Analysis "(MD&A") of LGX Oil + Gas Inc. for the third quarter
         of 2012 and unaudited condensed interim consolidated financial
         statements for the nine months ended September 30, 2012.  For
         a comparison of the quarter to prior quarters of Bowood Energy
         Inc., refer to page 12 of the MD&A of LGX Oil + Gas Inc. for
         the third quarter of 2012.

(2)      Management uses funds generated by operations, net debt and
         working capital surplus (deficit) and operating netback to
         analyze operating performance and leverage.  These terms, as
         presented, do not have a standardized meaning prescribed by
         International Financial Reporting Standards and therefore it
         may not be comparable with the calculation of similar measures
         for other entities.

(3)      In calculating the net income (loss) per share diluted, the
         Company excludes the effect of outstanding stock options and
         share warrants and uses the weighted average common shares
         (basic) where the Company has a net loss for the period. In
         calculating, funds generated by (used in) operations per share
         diluted, the Company includes the effect of outstanding stock
         options and share warrants using the treasury stock method. 

(4)      Boe means barrel of oil equivalent.  All Boe conversions in
         this report are derived by converting natural gas to oil
         equivalent at a ratio of six thousand cubic feet of natural
         gas to one barrel of oil equivalent.  Boe may be misleading,
         particularly if used in isolation.  A Boe conversion rate of 1
         Boe: 6 Mcf is based on an energy equivalency conversion method
         primarily applicable at the burner tip and does not represent
         a value equivalency at the wellhead. 

Accomplishments
    --  Closed the purchase from Legacy Oil + Gas Inc. ("Legacy") of
        the SA Assets, comprised of 68,581 net acres of undeveloped
        land in southern Alberta for 200,000,000 pre-consolidation
        common shares.  In conjunction with the asset purchase, the
        Company's management team was replaced with members from Legacy
        and the board of directors was reconstituted.
    --  Average production of 418 Boe per day in the third quarter of
        2012.
    --  Decreased operating cost per Boe from $13.52 per Boe in the
        third quarter of 2011 to $12.06 per Boe in the third quarter of
        2012 (11 percent decrease).
    --  Issued 120,000,000 units ("Units") at a price of $0.05 per Unit
        pursuant to a brokered private placement for net proceeds of
        approximately $5.7 million.   Each Unit was comprised of one
        pre-consolidation common share and one share purchase warrant
        ("Warrant") entitling the holder to purchase one
        pre-consolidation common share at a price of $0.065 per share
        for a period of three years.
    --  Completed a rights offering to its shareholders resulting in
        the issuance of an additional 10,639,827 pre-consolidation
        common shares for net proceeds of approximately $532,000.  
        Legacy was not entitled to participate in the rights offering
        with respect to the shares held by it.
    --  Shareholders approved a proposed name change to LGX Oil + Gas
        Inc. from Bowood Energy Inc. and a consolidation of outstanding
        common shares on a 20 to 1 basis.   This name change and
        consolidation of shares was completed effective as of August
        20, 2012.
    --  Increased lending value on the credit facility from $5.7
        million to $7.0 million.

OPERATIONS OVERVIEW

Strategic Transaction

On July 5, 2012, the shareholders of the Company approved the previously 
announced strategic transaction with Legacy whereby Legacy sold the SA Assets 
in exchange for 200,000,000 pre-consolidation common shares of the Company 
(the "Asset Purchase"). Following completion of the Asset Purchase, the 
Company had 474,933,373 pre-consolidation common shares outstanding of which 
42.1 percent were owned by Legacy. As well, the former officers of the 
Company resigned and were replaced by Trent Yanko as President and Chief 
Executive Officer, Matt Janisch as Vice-President, Finance, and Chief 
Financial Officer, and Mark Franko as Corporate Secretary. Also, the board 
of directors of the Company was reconstituted to be comprised of James Pasieka 
as Chairman, Trent Yanko, Chris Bloomer, Jim Welykochy, and Neil Roszell. 
Legacy and the Company concurrently entered into a management, technical and 
administrative services agreement whereby the Company will be managed by 
Legacy's current management and staff in exchange for a monthly fee.

During the July 5, 2012 shareholder's meeting, the shareholders also approved 
a proposed name change to LGX Oil + Gas Inc. from Bowood Energy Inc. and a 
consolidation of outstanding common shares on a 20 to 1 basis. This name 
change and consolidation of shares was completed effective as of August 20, 
2012.

Financings

On August 2, 2012, the Company issued 120,000,000 units ("Units") at a price 
of $0.05 per Unit pursuant to a brokered private placement for net proceeds of 
approximately $5.7 million. Each Unit was comprised of one 
pre-consolidation common share and one share purchase warrant ("Warrant") 
entitling the holder to purchase one pre-consolidation common share at a price 
of $0.065 per share for a period of three years.

On August 17, 2012, the Company completed a rights offering to its 
shareholders resulting in the issuance of an additional 10,639,827 
pre-consolidation common shares for net proceeds of approximately 
$532,000. Legacy was not entitled to participate in the rights offering 
with respect to the shares held by it.

EVENTS AFTER THE REPORTING PERIOD

On October 16, 2012, LGX announced it had drilled a vertical exploration well 
at 6-16-7-23 W4M to a total depth of 2,205 m ahead of schedule and under 
budget. The well is located approximately nine miles south of LGX's 8-30 
horizontal oil well which produces from the Big Valley Formation. The 6-16 
well encountered oil shows through the Big Valley Formation and other horizons 
and has been cored, logged and cased. The well cores and logs will be 
evaluated for further activity on the well, including a possible horizontal 
leg and/or completion. Also, to further the evaluation of the play, LGX has 
undertaken a 95 square mile 3D seismic program, centred over the Company's 
lands on the Blood reserve. Shooting and interpretation of the seismic 
program should be complete late 2012 and will be beneficial in directing 2013 
development activities

On November 7, 2012, LGX completed the acquisition of highly focused, high 
working interest, operated producing oil assets in southeast Alberta, 
consisting of light oil production, reserves and undeveloped land in the 
Manyberries area (the "Acquisition"). To finance the cash portion of the 
Acquisition and for general corporate purposes, the Company completed a bought 
deal prospectus financing on November 7, 2012 with a syndicate of underwriters 
to raise $47.5 million.

Through the Acquisition, LGX acquired 600 Boe per day of high quality, high 
netback, light oil assets focused in the Manyberries area of southeast Alberta 
for total consideration of $46 million (subject to customary closing 
adjustments) consisting of $42.5 million in cash and approximately 4.07 
million LGX common shares. With the Acquisition, LGX increases its oil and 
NGL weighting to approximately 67 percent of proforma production.

Subsequent to the quarter end, LGX's board of directors approved the following 
appointments; Curt Labelle, Vice President - Production, Dale Mennis, Vice 
President - Land, Mark Oliver, Vice President - Exploration, Bill Wee, Vice 
President - Operations, and Curt Ziemer, Vice President - Accounting.

OUTLOOK

A strategic imperative exists to aggressively grow the Company to a size that, 
when combined with high-netback oil production, strong balance sheet and 
substantial exposure to the high impact southern Alberta Bakken play, will 
differentiate LGX from our peer-group competitors. The recently closed 
Manyberries transaction and associated financing are evidence of LGX's 
strategy in action.

Manyberries brings the Company high quality light oil assets that can deliver 
significant development drilling and exploitation opportunities through the 
application of new technology while contemporaneously building a sustainable, 
predictable production base that provides internally generated free cash flow 
to fund LGX's extensive light oil exploration drilling inventory on its 
dominant land holdings on the Southern Alberta Bakken.

Proforma the Acquisition, LGX has the following characteristics:

Current Production                1,000 Boe/d (67% light oil and
                                  NGL's)

Proved plus Probable Reserves (   4.7 MMBoe (68% light oil and NGL's)
(1)):

Proved plus Probable RLI ((2)):   12.9 years

Undeveloped Land:                 186,800 net acres

(1)      Gross Company Reserves.  Reserves evaluated by GLJ Petroleum
         Consultants Ltd. as at December 31, 2011 for LGX and by GLJ
         Petroleum Consultants Ltd. as at March 31, 2012  and "look
         ahead" evaluated as of September 30, 2102 for the Acquisition,
         both in accordance with National Instruments 51-101.  Gross
         Company Reserves means the Company's working interest reserves
         before the calculation of royalties, and before the
         consideration of the Company's royalty interests. 

(2)      Based on current production.

Work has already begun on several low risk exploitation opportunities in 
Manyberries. LGX has also started completion operations on the recently 
drilled 6-16 Big Valley well and will be moving forward with the 95 square 
mile 3D seismic survey over its Blood reserve leases.

LGX is a uniquely positioned, technically driven, junior oil and natural gas 
company with a proven management team committed to aggressive, cost-effective 
growth of light oil reserves and production combined with high impact 
exploration potential in southern Alberta. LGX's common shares trade on the 
TSX Venture Exchange under the symbol OIL.  

Reader Advisories

Forward-Looking Information - This press release contains forward-looking 
statements. More particularly, it contains forward-looking statements 
concerning LGX's planned exploration and development activities.

The forward-looking statements contained in this press release are based on 
certain key expectations and assumptions made by LGX, including expectations 
and assumptions concerning the success of future drilling, development and 
completion activities, the performance of existing wells, the performance of 
new wells, the availability and performance of facilities and pipelines, the 
geological characteristics of LGX's properties, the successful application of 
drilling, completion and seismic technology, prevailing weather conditions, 
commodity prices, royalty regimes and exchange rates, the application of 
regulatory and licensing requirements and the availability of capital, labour 
and services.

Although LGX 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 (e.g., operational risks in development, 
exploration and production; the uncertainty of reserve estimates; the 
uncertainty of estimates and projections relating to production, costs and 
expenses, and health, safety and environmental risks), constraint in the 
availability of services, commodity price and exchange rate fluctuations, 
adverse weather conditions and uncertainties resulting from potential delays 
or changes in plans with respect to exploration or development projects, 
waterflood projects or capital expenditures. These and other risks are set 
out in more detail in LGX's Annual Information Form for the year ended 
December 31, 2011 dated April 20, 2012.

The forward-looking statements contained in this press release are made as of 
the date hereof and LGX 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.







Trent J. Yanko, P.Eng. President + CEO  Matt Janisch Vice President, Finance + 
CFO  4400, 525 - 8th Avenue S.W. Calgary, AB T2P 1G1  Telephone: 403.441.2300

SOURCE: LGX Oil + Gas Inc.

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CO: LGX Oil + Gas Inc.
ST: Alberta
NI: OIL ERN 

-0- Nov/09/2012 02:44 GMT


 
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