CALGARY, July 6, 2015 /CNW/ - LGX Oil + Gas Inc. ("LGX" or the "Company") (TSXV: OIL) is pleased to provide an update of the Banff completion results from the 6-36-8-24 W4M well and various corporate developments.
As previously announced, the Banff Formation was completed with a 6 m perforated interval in the build section of the intermediate casing of the 6-36 well and stimulated with a small volume acid job. Pump and rods have been run in the well and the well is currently producing at approximately 230 Bbl oil per day with a high fluid level and low water cut. The Company will optimize production from the well over the next few days. LGX has a 100 percent interest in the well prior to recovery of 200 percent of the drilling, completion, equipping and tie-in costs, at which point its interest will revert to 80 percent. Please refer to important Reader Advisories at the end of this news release
LGX is pleased to announce the addition of John Gunton to the board of directors. Dr. Gunton is an independent businessman. He has over 40 years of industry experience in the search for and production of oil and natural gas throughout Canada and globally. His Canadian experience in the Western Canada Sedimentary Basin, the Williston Basin and the East Coast Offshore includes positions held at Shell Canada, Imperial Oil and several junior Canadian oil and gas companies. He also served as Managing Director, Geoscience of Waterous Securities Inc. (currently Scotia Waterous). Dr. Gunton formed Discovery International Geoconsulting Inc., an advisory company that provided advisory services for 19 exploration and production projects in Canada and internationally from 1997 to 2012. Dr. Gunton is a geologist and holds a B.Sc degree in geology (honours) from Durham University and a Ph.D. in geology from Queens University.
The Company has received termination notice of the Management, Administrative and Technical Services Agreement from Crescent Point Energy Corp. as successor to Legacy Oil + Gas Inc. Obligations under this agreement terminate September 29, 2015 and after which LGX intends to have in place the necessary staff and contractors to manage the daily operations of the Company. Also, LGX announces the resignations of James Pasieka, the Chairman and a director of the Company, and Mark Franko, Vice President, Legal and General Counsel. LGX wishes to thank Mr. Pasieka and Mr. Franko for their contributions to the Company.
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution Respecting Initial Production Results - The production results for the Banff Formation completion at the 6-36 well disclosed in this press release are early time results and are not determinative of the rates at which such well will continue production and decline thereafter. Due to the likelihood of high initial declines from the tested rates, the test results are not indicative of long-term performance or ultimate recovery from the well. Readers are cautioned not to place undue reliance on such rates in considering the long-term performance of the well or the aggregate production of the Company.
Forward-Looking Information - This press release contains forward-looking statements. More particularly, it contains forward-looking statements concerning the prospectivity of LGX's properties with respect to the Banff Formation.
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 geological characteristics of LGX's properties.
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 LGX 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, operational risks in development, exploration and production and risks associated with uncertainty in geological and seismic interpretation. These and other risks are set out in more detail in LGX's Annual Information Form for the year ended December 31, 2014 dated March 24, 2015.
The forward-looking statements contained in this press release are made as of the date hereof and the Company 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 - 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. Given that the value ratio of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 Boe : 6 Mcf, utilizing a conversion ratio of 1 Boe : 6 Mcf may be misleading as an indication of value.
SOURCE LGX Oil + Gas Inc.
For further information: Trent J. Yanko, P.Eng., President + CEO; Curt Ziemer, CGA, Vice President, Finance + CFO; 4210, 525 - 8th Avenue S.W., Calgary, AB T2P 1G1, Telephone: 403.441.2300