Stock Alert for Legend Oil and Gas Ltd. (LOGL) " />

Stock Alert For Legend Oil and Gas Ltd. (LOGL)

Legend Oil and Gas (LOGL) is an oil and gas production and exploration company focused on the dual strategy of developing its existing oil producing assets, while actively seeking projects with significant “Blue Sky” potential in the oil-prone shale plays in North America. In 2010, the Company acquired its Piqua property, a 1,040-acre site with 33 active wells in Woodson County, Kansas. It plans to drill development wells and remediate any existing wells that require work on the site, as well as working to improve the production systems in place with the goal of doubling production and creating strong cash flow. It is also actively seeking projects in several of the large shale plays, particularly in the Bakken/Three Forks play.

Share Statistics (28-Feb-12) FY2009 FY2010 % Chg Q32010 Q32011 % Chg
Symbol LOGL Revenue, $Mn 0.00 0.02 0.00 0.07
Current price $1.41 Gross marg. 0.0% 100.0% 0.0% 100.0%
52wk Range: $1.21-$1.58 Oper. margin -929.7% -708.2%
Avg Vol (3m): 468,289 Net margin -800.0% -685.7%
Market Cap. 71.32M
Shares Outstanding 50.58M EPS, $ 0.00 0.00 0.00 -0.01

Source: Reuters.com, SEC Filings.

Investment Highlights

Shares of Legend Oil and Gas Ltd. (LOGL) rose 16.5% to $3.30 in Tuesday’s trading, stretching gains for the fourth straight trading session.  Over 5.25 million shares exchanged hands during the day, versus the 10-day average of over 1.88 million. The stock has a 52-week range of $0.58 – $2.74. It is currently trading above  its 50-day moving average of $0.94 and below its 200-day moving average of $1.63.

Shares of LOGL have gained 58.4% in the last five days; 43.9% in the last month; and 1,275.6% year-to-date.

LOGL shares spiked earlier this month after the company updated shareholders on its drilling progress in Kansas. The Company announced that the three wells drilled in Piqua, Kansas in December last year have been completed and placed on production and early results suggest that these wells should perform similarly to its previous development program.

“With the positive results of our drilling activities, we are planning a 10 well development program for the spring of 2012.  We believe the results of our drilling to date will allow us to accelerate our “ramp-up” of development on the property, with more than 50 drilling locations identified,” the Company said in a statement.

LOGL also recently named two new independent directors to its board, Alan Jochelson and John Busey, bringing the current number of directors on its board to four. The Company commented that these appointments reflect its corporate governance objective of having a majority of independent directors on its board.  It intends to add an additional appointee within the next several weeks.

LOGL’s board established an audit committee and compensation committee, appointing the two new appointees to the said committees.  A third committee, overseeing its oil and gas reserves, will be established once the board appointments have been completed, it said.

Source:

http://legendoilandgas.com/index.php/category/news-media/1-news/

Financial Summary

LOGL reported a net loss of $476 K for the three months ended September 30, 2011, up from a net loss of $44 K for the three months ended September 30, 2010. Net loss for the nine months ended September 30, 2011, was $708 K, compared to a net loss of $72 K for the nine months ended September 30, 2010. The Company attributed the period to period increase in net loss to an increase in costs and operating expenses without a commensurate increase in revenues.

For the three months ended September 30, 2011, and June 30, 2011, the Company generated revenue of $67 K and $50 K, respectively, principally from its oil production in the Piqua properties in Kansas. Oil production (Bbls) increased 62.5% during the three months ended September 30, 2011, as compared to the three months ended June 30, 2011. Production increased due to the completion of drilling three wells, the recompletion of the drilling of a fourth well, and general streamlining and improvements to its existing well operations. LOGL’s revenues in the nine months ended September 30, 2011, and 2010 were $163,000 and $nil, respectively.

The average price per barrel during the three months ended September 30, 2011, and June 30, 2011, was $80.79 and $97.22, respectively, a 16.9% decrease.

Source:

http://biz.yahoo.com/e/111114/logl.ob10-q.html?legacy=1

Financial Strength (28-Feb-12)

Company

Industry

Sector

S&P 500

Quick Ratio (MRQ) 1.15 0.58 0.65
Current Ratio (MRQ) 41.20 1.26 0.82 1.00
LT Debt to Equity (MRQ) 0.00 6.70 12.36 171.80
Total Debt to Equity (MRQ) 0.00 7.53 17.05 224.97
Interest Coverage (TTM) -21.19 0.48 3.83 26.04

Source: Reuters.com, SEC Filings.

Technical Analysis

Source: http://stockcharts.com

Comparative Analysis

Company Name Ticker Price per Mrkt. Cap. P/E P/S
Feb28-2012 symbol Share, $ $ Mn 2011 2012 2011 2012
Apache Corp. APA 109.59 42.08B 8.89 8.00 2.28 2.04
Mexco Energy Corp. MXC 9.50 19.24M n/a n/a n/a n/a
Abraxas Petroleum Corp. AXAS 4.25 389.01M 38.64 14.66 5.59 3.72
Anadarko Petroleum Corp. APC 85.89 42.81B 24.75 18.39 2.94 2.55
Independent Oil & Gas Median       19.93 n/a 6.30 n/a
Legend Oil and Gas Ltd. LOGL 1.41 71.32M n/a n/a n/a n/a

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Leave a Reply

Your email address will not be published. Required fields are marked *