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.
Reader Advisories
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.