New Western Energy Corporation to acquire Legend Oil and Gas Ltd.

Published Jan 10, 2014
New Western Energy Corp.

New Western Energy Corporation has entered into a non-binding letter of intent (LOI) to acquire all of the issued and outstanding common shares of Legend Oil and Gas Ltd. Under the terms of the LOI, New Western Energy proposes to exchange shares of Legend Oil valued at $0.09 per share for shares of New Western Energy based on the average of the closing bid prices of New Western's common stock over the ten days prior to the Closing Date, but at a price that will be no less than $0.21 per share and no more than $0.27 per share, unless mutually agreed to by the parties.

According to Javan Khazali, President of New Western Energy, "The strategic acquisition of Legend Oil not only increases our holdings in Kansas but also allows us to diversify our geographic portfolio outside of the U.S. and into the diverse energy region of Western Canada. From an operating strategy point of view, we will immediately accelerate revenue growth through our combined production rate while having opportunities to aggressively develop oil & gas properties in historically proven zones in the near term. We are extremely excited to join forces with the Legend Oil management team that has shown in-depth technical expertise and tremendous exploration and operation capabilities. We expect this value creation to reflect on our strong post - transaction balance sheet with substantial increase in pro forma liquidity that will further enable us to continue organic growth and fund future acquisitions."

Tags: New Western Energy Corp.


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