Legend Oil and Gas Ltd. (OTCQB: LOGL) ("Legend", the "Company") is pleased to announce that the Company has closed the purchase of an oil producing property near the town of McCune in Crawford County Kansas. The property consists of six nearly contiguous leases in the McCune oil field. The asset is partially developed with a number of shallow oil and water injection wells currently producing 7 barrels of oil per day (BOPD).
Marshall Diamond-Goldberg, President of Legend Oil and Gas, Ltd., stated, "The McCune acquisition is a strategic addition to our Kansas asset portfolio and was negotiated at a very attractive price relative to many of the deals we have seen in the past six months. Legend will be acquiring the property for a combination of common shares and cash totaling approximately $50,000 per flowing barrel, and less than three times current cash flow."
Due diligence included a full title review as well as environmental assessment. Identified liabilities are to be born solely by the seller and are outlined in detail in the Purchase Agreement. The addition of the McCune asset will initially increase our average Kansas production by 30% to approximately 26 BOPD.
Northpoint Energy Partners of Atlanta, GA acted as Legend's advisor on this transaction.