LEGACY OIL + GAS INC. ANNOUNCES THIRD QUARTER 2010 RESULTS

CALGARY, Nov. 10 /CNW/ - Legacy Oil + Gas Inc. ("Legacy" or the "Company") (TSX:LEG) is pleased to announce it has filed on SEDAR its unaudited consolidated financial statements and related Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2010. Selected financial and operational information is outlined below and should be read in conjunction with Legacy's unaudited consolidated financial statements and related MD&A which are available for review at www.legacyoilandgas.com or www.sedar.com. 

Third quarter results do not include a full quarter of production and financial results associated with the CanEra Resources Inc. acquisition.

Financial + Operational highlights
					Three Months Ended			Nine Months Ended
					September 30			September 30
					2010	2009	% change	2010	2009	% change
Financial ($000's, except per share amounts)
Petroleum and natural gas sales					63,699	11,625	448	143,260	15,959	798
Funds generated by operations^(1)					35,137	4,549	672	83,142	5,645	1,373
				Per share basic^(1)	0.29	0.17	71	0.91	0.46	98
				Per share diluted^(1)	0.29	0.16	81	0.90	0.45	100
Net loss					(4,894)	(3,286)	49	(15,316)	(4,672)	228
				Per share basic	(0.04)	(0.13)	(69)	(0.17)	(0.38)	(55)
				Per share diluted	(0.04)	(0.13)	(69)	(0.17)	(0.38)	(55)
Capital expenditures					41,144	4,492	816	118,951	6,605	1,701
Corporate and asset acquisitions
(cash consideration)					234,257	102,552	128	254,350	102,552	148
Net debt and working capital surplus (deficit)					(194,257)	(42,314)	359	(194,257)	(42,314)	359
Operating
Production
				Crude oil (Bbls per day)	7,876	1,801	337	6,432	906	610
				Natural gas (Mcf per day)	13,228	280	4,624	5,355	94	5,597
				Natural gas liquids (Bbls per day)	1,050	-	n/a	383	-	n/a
				Barrels of oil equivalent (Boe per day)^(2)	11,130	1,847	503	7,707	922	736
Average realized price
				Crude oil ($ per Bbl)	74.27	69.87	6	75.20	64.31	17
				Natural gas ($ per Mcf)	3.72	1.90	96	3.79	1.90	99
				Natural gas liquids ($ per Bbl)	55.53	-	n/a	54.31	-	n/a
				Barrels of oil equivalent ($ per Boe)^(2)	62.21	68.40	(9)	68.09	63.41	7
Netback per Boe ($)
				Petroleum and natural gas sales	62.21	68.40	(9)	68.09	63.41	7
				Royalties	11.05	9.18	20	11.60	7.36	58
				Operating expenses^(3)	10.53	15.11	(30)	11.00	16.61	(34)
				Transportation expenses^(3)	1.44	0.66	118	1.56	0.44	255
Operating Netback					39.19	43.45	(10)	43.93	39.00	13
				Undeveloped land holdings (gross acres)	567,970	271,571	109	567,970	271,571	109
				(net acres)	435,020	207,863	109	435,020	207,863	109
Common Shares (000's)
Shares outstanding, end of period
Common & Class A shares^(4)					125,876	46,493	171	125,876	46,493	171
Class B common shares^(4)					-	154	n/a	-	154	n/a
Weighted average shares					122,061	26,000	369	91,448	12,253	369

(1)     Management uses funds generated by operations to analyze operating performance and leverage.  Funds generated by operations as presented does not have any standardized meaning prescribed by Canadian GAAP and therefore it may not be comparable with the calculation of similar measures for other entities.

(2)     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. 

(3)     Transportation expenses up to the six months ended June 30, 2009 were reported as part of operating expenses.

(4)     The class B common shares were converted to class A common shares on October 5, 2009.  On December 2, 2009, Legacy Oil + Gas Inc. consolidated its outstanding class A shares on a 6 to 1 basis and redesignated the class A shares as common shares as approved by shareholders.   Comparative figures have been presented as if this share consolidation occurred on January 1, 2009.

ACCOMPLISHMENTS

• On July 7, 2010, closed the acquisition of CanEra Resources Inc. ("CanEra") for total consideration of $233 million in cash, 20.5 million Legacy common shares and assumed net debt of $107.5 million (the "Acquisition"). The assets were comprised of high quality, high netback, long life, light oil and liquids rich natural gas assets focused in southwest Alberta with production of approximately 4,900 Boe per day and proved plus probable gross company reserves of 55.3 MMBoe (as evaluated by Sproule Associates Ltd. as at December 31, 2009).  CanEra's primary asset is the dominant, operated working interest in the giant 1.3 billion barrel original oil in-place ("OOIP") and 1.6 Tcf original gas in-place ("OGIP") (both figures from published ERCB estimates) Turner Valley field and associated gathering, treating and compression facilities.
  
  
• In the third quarter, in connection with the Acquisition, closed a bought-deal prospectus offering of 20,000,000 subscription receipts ("Subscription Receipts") plus an over-allotment option of 3,000,000 Subscription Receipts at a price of $11.80 per Subscription Receipt to raise total gross proceeds of $271.4 million. The Subscription Receipts were exchanged for common shares on a one to one basis for no additional consideration upon completion of the acquisition of CanEra.
  
  
• Increased average production from 1,847 Boe per day in the third quarter of 2009 to 11,130 Boe per day in the third quarter of 2010 (503 percent increase).  Production for the third quarter of 2010 consisted of 80 percent oil and natural gas liquids and 20 percent natural gas.  Third quarter average production does not include a full quarter of production results associated with the CanEra Resources Inc. acquisition.
  
  
• Increased funds generated by operations from $4.5 million in the third quarter of 2009 to $35.1 million in the third quarter of 2010 (672 percent increase).
  
  
• Increased funds flow from operations per share (basic) from $0.17 in the third quarter of 2009 to $0.29 in the third quarter of 2010 (71 percent increase).
  
  
• Reduced operating and transportation costs from $15.77 per Boe in the third quarter of 2009 to $11.97 per Boe in the third quarter of 2010 (24 percent decrease) and from $12.41 per Boe in the second quarter of 2010 (4 percent decrease).  Operating costs in the third quarter of 2010 were $10.53 per Boe.
  
  
• Reduced G&A costs from $11.91 per Boe in the third quarter of 2009 to $2.53 per Boe in the third quarter of 2010 (79 percent decrease) and from $2.67 per Boe in the second quarter of 2010 (5 percent decrease).
  
  
• Drilled 31 (20.3 net) wells with a 100 percent drilling success in the third quarter of 2010.
  
  
• Increased undeveloped land holdings from 207,863 net acres at the end of the third quarter of 2009 to 435,020 net acres at the end of the third quarter of 2010 (109 percent increase).
  

TURNER VALLEY ACQUISITION

Through the acquisition of CanEra, Legacy acquired a dominant, operated working interest in the giant 1.3 billion barrel OOIP and 1.6 Tcf OGIP (both figures from published ERCB estimates) Turner Valley oilfield.  The field was discovered in 1913, while the main Rundle producing zone was discovered in 1924.  The majority of the development of the field was through vertical drilling in the 1930's and 1940's, however 21 horizontal wells were drilled between 1995 and 2005.  Legacy believes that employing modern reservoir management techniques, as well as the application of recently developed completion techniques, including multi-stage fracture stimulation, could lead to higher recovery factors.  The Turner Valley field also holds potential for light oil in several uphole underexploited zones, including the Cardium, which has had several oil shows in and around the Turner Valley field. 

OPERATIONS OVERVIEW

In the third quarter, the Company spent $41.1 million on capital expenditures: $31.3 million on drilling and completions, $6.6 million on equipping and facilities and $3.2 million on land, seismic and other.  Legacy continued the strong drilling momentum established late in the second quarter.  The Company participated in the drilling of 31 horizontal wells (20.3 net) targeting light oil, achieving a 100 percent success rate. Legacy drilled 10 (6.2 net) Bakken wells in the quarter: 3 (2.2 net) at Taylorton, 4 (3.9 net) at Heward/Stoughton and 3 (0.1 net) at Kisbey/Star Valley.  In addition, the Company drilled 8 (2.8 net) wells in the Torquay at Frys/Antler and 13 (11.4 net) wells in the Mississippian.  The majority of this drilling activity did not occur until late in the quarter due to weather issues, therefore production additions related to this activity contributed minimally to the third quarter average. Average production was also affected by wet weather through delays in fluid trucking, well servicing and well tie-in projects.

At Heward, Legacy's first 200 meter infill horizontal Bakken well has demonstrated encouraging initial production results, averaging 170 Boe per day in the first 30 days of production.  This performance is superior to the initial performance of the immediately adjacent 400 meter offset Bakken wells and is attributed to the advancements made by Legacy in the completion design in the Heward area.  The Company intends on monitoring the longer term performance of this well and the potential value uplift to the area.  Legacy has no development inventory locations or reserves assigned by its third party evaluator for 200 meter infill locations for any of its Bakken assets.

During the third quarter, the Company added to its land position in its two emerging light oil resource plays in Bottineau County, North Dakota and Maxhamish, British Columbia.  At Bottineau County, Legacy has added 3,750 acres of Spearfish prospective land, increasing the Company's land holding to 32,600 net acres.  Subsequent to the third quarter, at Maxhamish, Legacy and its partner acquired the farmor's interest in the land, wells and facilities associated with the Chinkeh light oil resource play.  As a result of this acquisition, the Company now has a 61.5 percent working interest in 69,440 gross acres, seven oil wells and the gathering and road infrastructure.  This acquisition also eliminated the aggressive rolling option drilling obligations to earn the farmout lands, thereby allowing Legacy to better control the timing and pace of development and the associated capital expenditures.

The majority of Legacy's extensive light oil resource base is amenable to improved recovery through waterflooding.  The objective of increasing the Company's exposure to light oil resource plays and assets that are waterflood candidates was pursued from the beginning when Legacy was created 16 months ago. 

Evaluation of pilot waterflood projects at both Heward and Taylorton are progressing, with regulatory approval of the Taylorton pilot already received.  The Bakken is already being successfully waterflooded at Viewfield by an area operator and aggressive expansion plans are underway.  A waterflood project in the Bakken at Heward and Taylorton is expected to more than double primary recovery factors.

The coreflooding study of the Torquay at Antler/Frys is continuing and Legacy anticipates receiving results of the subsequent reservoir simulation in early 2011.  Antler/Frys is directly adjacent to the successful waterflood project in the Sinclair field in Manitoba.  This waterflood project has now been expanded to more than 23 sections and is expected to recover up to 30 percent of the PIIP, a more than five-fold increase in recovery factor over primary.  Legacy has exposure to more than 90 MMSTB of net PIIP in the Torquay at Frys/Antler (as independently mapped by GLJ Consultants Ltd., August 1, 2009).

The Company has continued the successful assimilation of all its acquired assets.  This success is demonstrated by the continued company-wide improvement in operating costs.  From the first quarter to the third quarter of 2010, Legacy has reduced its operating costs (including transportation) by nearly 15 percent to $11.97 per Boe.  The significance of this reduction is that it occurred through six months of unprecedented wet weather and challenging surface access conditions in the field.

SUBSEQUENT EVENTS

On November 4, 2010, the Company closed an arrangement with Bronco pursuant to which it acquired all of the issued and outstanding shares and convertible debentures of Bronco in exchange for 862,893 Legacy common shares and $25.5 million in cash consideration.

OUTLOOK

Legacy has increased its 2010 capital expenditure budget to $175 million due to success in a number of the Company's core areas.  In addition, Legacy accelerated the implementation of a number of capital projects from 2011 to late 2010 to capitalize on the Company's success at improving production run times, reducing operating costs and increasing production.  As a result of the increased capital budget, Legacy now expects to drill 95 gross (66.4 net) wells.

This incremental drilling is occurring in the latter part of 2010 and is expected to lead to average production for 2010 of 8,900 Boe per day; which has been impacted by an outage at the Quirk Creek natural gas plant.  The majority of the Turner Valley field's natural gas and NGL production is processed at Quirk Creek.  The facility was recently shut down for minor unscheduled maintenance that could last until the end of November 2010.  These repairs are expected to restore the previous processing capacity until a scheduled major plant turnaround in April 2011.  In addition, the Company has increased its exit guidance to more than 13,000 Boe per day, representing 126 percent growth over the 2009 exit rate.  Production guidance stated above does not include any volumes from the recently announced acquisition of Bronco Energy Ltd.

At Turner Valley, mapping and oil shows suggest a potentially significant light sweet Cardium oil pool more than 11 miles in length and up to 1.5 miles wide.  Legacy has recently completed and fracture stimulated the Cardium zone in an older Rundle vertical well and is in the process of recovering load oil and formation hydrocarbons. In addition, the Company has cased the first of a three well vertical drilling program in Turner Valley targeting light oil in the Rundle zone.  Oil shows in all three main producing Rundle intervals was indicated by sample description, gas detector response and well logs.  Completion operations are expected to commence shortly.

At North Dakota, Legacy is currently moving in a drilling rig to spud the first of an initial three well program targeting the Spearfish formation and expects to have results before the end of the year, with three follow-up drill-ready locations prepared.

The Company continues to advance plans to further evaluate the Chinkeh formation at Maxhamish this winter drilling season.  These plans are anticipated to include the construction of an all-weather access road and multi-well pad to facilitate the drilling of three to four horizontal wells.  With all-weather access, Legacy will be able to fracture stimulate the horizontal wells in the summer mitigating potential service outages and peak season cost premiums.

Legacy continues to successfully execute its business plan even in the face of unrelenting wet weather and challenging surface access conditions through the better part of 2010.  Legacy's staff was able to keep operations moving forward and maintained oil sales to market by proactively managing our business and providing the extra effort to ensure our goals were met.

Additional development opportunities continue to be identified resulting in further diversity in our growth inventory.  The Company's upside is no longer measured strictly by the depth of our light oil development drilling inventory but by the breadth of other opportunities including, recompletion, workovers, optimization and waterflood potential.  This expansion and diversification of our growth inventory coupled with the Company's low decline, long reserve life cash flow base, provides a platform for sustainable growth for the next number of years.  Legacy continues to look to broaden its light oil resource play exposure through a combination of detailed technical evaluation of its existing assets and pursuit of new emerging light oil resource play opportunities.

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 STATEMENTS: This press release contains forward-looking statements. More particularly, this press release contains statements concerning potential geological characteristics of the Company's properties, the potential for enhanced recovery and production from the application of completion and reservoir management techniques, the 2010 average and exit rates of production, planned drilling and development activities and the expected restoration of plant capacity at Quirk Creek. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including expectations and assumptions concerning the availability of capital, the success of future drilling and development activities, the performance of existing wells, the performance of new wells , prevailing commodity prices, the availability of labor and services, the geological nature of the formations targeted by the Corporation, the success of completion and recompletion activities and the success of repairs to the Quirk Creek natural gas plant. Although the Company 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 the Company 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; 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, and health, safety and environmental risks), commodity price and exchange rate fluctuations, uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures and unexpected reductions in capacity at facilities. Certain of these risks are set out in more detail in the Company'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 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: 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.

This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale of securities mentioned in this press release in any state in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this RELEASE.

%SEDAR: 00023400E

For further information:

Trent J. Yanko, P.Eng. President + CEO	Matt Janisch, P.Eng. Vice-President, Finance + CFO
Legacy Oil + Gas Inc. 3900, Bow Valley Square II 205 - 5^th Avenue S.W. Calgary, AB T2P 2V7	Legacy Oil + Gas Inc. 3900, Bow Valley Square II 205 - 5^th Avenue S.W. Calgary, AB T2P 2V7
Telephone: [phone] Fax: [phone]	Telephone: [phone] Fax: [phone]