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:, 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.


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.


Financial Strength (28-Feb-12)




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:, SEC Filings.

Technical Analysis


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

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