Exploration & Production | Quarterly / Earnings Reports | Second Quarter (2Q) Update | Bankruptcy / Restructure Update | Capital Markets
Legend Talks 2Q Results, Outlook Amidst Restructuring
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Legend Oil and Gas has reported that its quarterly report indicates many items which reflect the corporate restructuring that began in the second quarter of this year.
Warren Binderman, Legend's Chief Financial Officer notes that "Despite the losses incurred during the first six months of 2014, the Company spent the last month of the quarter, thanks to financing by the Hillair cash infusion, tackling various legacy business challenges on all fronts. We expended capital to grow our oil production through new drilling on the company's Piqua Project in Woodson County, Kansas, and have navigated through many of the pre-existing issues at the Company. While we are not out of the woods yet, we have begun to gain some positive momentum and our capital spending is starting to reap measureable rewards through significant increases in oil production as each new well comes on line.
"When you dig into the financials, you will note a 'silver lining' in that many of the costs incurred this period were non-cash in nature. We impaired our Canadian assets resulting in a non-cash charge of over $425 thousand, resolved administrative matters through issuance of common stock for services resulting in charges of over $800 thousand, and recognized a non-cash interest expense of almost $900 thousand. We have successfully reduced our general and administrative cash costs and were able to gain control over our legacy accounts payables. These are monumental achievements in light of where the Company was prior to the beginning of this restructuring."
Andrew Reckles, Chief Restructuring Officer states that "We still have a lot of work to do, and the heavy lifting is by no means complete, but I am proud of the achievements that the team has produced so far, and with the continued support of Hillair, we look forward to continuing that momentum into the third and fourth quarters of this year."