CALGARY, Jan. 3, 2014 /CNW/ - As previously announced, LGX Oil + Gas
Inc. ("LGX" or the "Company") (TSXV:OIL) and other producers have
received notice from the Federal Minister of Environment of an
Emergency Order for the Protection of the Greater Sage-Grouse (the
"Order") pursuant to the Species at Risk Act (Canada) ("SARA"). The stated purpose of the Order is to address the
imminent threats to the survival and recovery of the Greater
Sage-Grouse, including protecting the habitat identified in the Order
to help stabilize the Greater Sage-Grouse population and begin its
recovery. The Order will come into force on February 18, 2014, unless
the effective date of the Order is postponed.
The Order applies to specified federal and provincial Crown lands. The
majority of LGX's Manyberries property is located on specified Crown
lands covered by the Order. LGX has concluded that the Order has the
potential to have a significant adverse effect on LGX's ability to
maintain and increase production at Manyberries. Concurrently with the
dissemination of this press release, LGX is filing a material change
report, with a copy of the Order appended thereto, which can be viewed
on LGX's SEDAR profile at www.sedar.com.
The Order does not affect LGX's operations in the Southern Alberta
LGX advises that, in conjunction with the City of Medicine Hat, it has
filed an application with the Federal Court of Canada for judicial
review of the Order on the grounds that certain provisions of SARA are ultra vires the jurisdiction of the Parliament of Canada and are of no force and
effect, and that the Minister of Environment and Governor General in
Council failed to consult with LGX and the City of Medicine Hat, and
therefore did not adhere to the requirements of procedural fairness and
natural justice in recommending and making the Order. As a result of
the failure to consult, the Minister and Governor General in Council
relied on a number of erroneous facts and assumptions, rendering their
LGX and the City of Medicine Hat are seeking an order of the Federal
Court quashing the Order and will pursue compensation for losses
arising from any impact to their operations at Manyberries. LGX and
the City of Medicine Hat will also seek additional relief to protect
their respective interests at Manyberries.
Protection of the Greater Sage-Grouse is a laudable goal and LGX has
been in full compliance with the Province of Alberta's comprehensive
legislative and regulatory framework for the protection of the Greater
Sage-Grouse which has been in place since 1996. Furthermore, LGX has
both surface leases and mineral leases with the Province of Alberta
that are subject to Alberta legislative jurisdiction. LGX reasonably
expects to obtain the support of the Province of Alberta to quash the
Order, given the grave infringement on the Province of Alberta's
constitutional jurisdiction over surface rights, mineral rights, and
regulation of the oil and gas industry at large.
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.
SOURCE: LGX Oil + Gas Inc.
For further information:
Trent J. Yanko, P.Eng.
President + CEO
Vice President, Finance + CFO
4400, 525 - 8th Avenue S.W.
Calgary, AB T2P 1G1