LGX Oil + Gas Inc. 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.