LEGEND OIL AND GAS LTD. (LOGL) Announces Mutual Settlement and Release
Agreement with the National Bank of Canada
For Immediate Release
ALPHARETTA, G.A., Aug. 20, 2014 (GLOBE NEWSWIRE) -- Legend Oil and Gas Ltd.
(OTC Markets: LOGL) ("Legend", the "Company") is pleased to announce that
Legend and National Bank of Canada ("NBC") have signed a mutual release and
settlement agreement (the "Agreement"). NBC is the Senior lender for the
company's sole wholly owned Canadian subsidiary, Legend Energy Canada, LTD
Under the terms of the Agreement, Legend Oil and Gas, Ltd ("Legend") is
released and discharged by NBC of any and all obligations under NBC's general
security agreement dated May 11, 2012, the letter of guarantee, dated May 11,
2012, and the letter of financing entered into on July 17, 2012. Further, and
critical to the restructuring of Legend, NBC released its security interests
held in any and all assets of Legend Oil and Gas, Ltd. ("Legend"). Legend
paid consideration to NBC of CDN$250,000 for these mutual releases.
Andrew Reckles, Legend's Chief Restructuring Officer states that "when the
restructuring of Legend began, one of the most urgent orders of business was
to work with all of our financing partners to remedy Legend's existing
defaults under its various debt instruments and to create a financial platform
from which to grow. With this settlement executed, Legend is now able to put
its sole focus on growing its U.S. based oil and gas assets and continuing to
build on the Mid-Continent drilling and acquisition thesis that is currently
underway. We appreciate both, NBC's cooperation, working with us to settle
this overlying matter, and our US based financial partners, for continuing to
support our restructuring and growth efforts".
Chief Financial Officer, Warren Binderman, states that "this resolution allows
us to further expand the Company's operations and financial platform, such
that we expect to have better access to the capital markets, through banks and
potential investors. Further, this settlement allows us to simplify our
financial processes while continuing to streamline our operating cost
structure and related cash outlays, such that our funds can be spent on
drilling and acquisition of oil and gas properties giving us expected returns
About Legend Oil and Gas Ltd.
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.
This press release contains forward-looking statements concerning future
events and the Company's growth and business strategy. Words such as
"expects," "will," "intends," "plans," "believes," "anticipates," "hopes,"
"estimates," and variations on such words and similar expressions are intended
to identify forward-looking statements. Although the Company believes that the
expectations reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have been correct.
Forward looking statements in this press release include statements about our
drilling development program. These statements involve known and unknown
risks and are based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies, many of
which are beyond the control of the Company. Actual results may differ
materially from those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially include, but are
not limited to, the timing and results of our 2014 drilling and development
plan. Additional factors include increased expenses or unanticipated
difficulties in drilling wells, actual production being less than our
development tests, changes in the Company's business; competitive factors in
the market(s) in which the Company operates; risks associated with oil and gas
operations in the United States; and other factors listed from time to time in
the Company's filings with the Securities and Exchange Commission including
the Company's Annual Report on Form 10-K for the year ended December 31, 2013
and Form 10Q for the quarter ended March 31, 2014. The Company expressly
disclaims any obligations or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to reflect any
change in the Company's expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is based.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange
Commission permits oil and gas companies, in their filings with the SEC, to
disclose only proved reserves that a company has demonstrated by actual
production or conclusive formation tests to be economically and legally
producible under existing economic and operating conditions. We use certain
terms in this press release, such as "probable," "possible," "recoverable" or
"potential" reserves among others, that the SEC's guidelines strictly prohibit
us from including in filings with the SEC. Investors are urged to consider
closely the disclosure in our filings with the SEC.
CONTACT: Andrew Reckles
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