LGX Oil + Gas Inc. provided completion results from late 2014 southern Alberta drilling activity. LGX drilled two horizontal wells into the Big Valley (Three Forks) Formation (12-2-8-24W4 and 6-36-8-24W4). The total capital expenditures for the two wells came in on budget at approximately $14 million.

The 12-2 well was drilled with a 1,402 m horizontal lateral and was completed with a 20 stage fracture stimulation. The well was put on production late November 2014 and averaged 315 Bbl per day of light oil for the first 30 days of production. LGX has a 100% working interest in the well prior to recovery of 200% of the drilling, completion, equipping and tie-in costs, at which point its interest will revert to 80%.

The 6-36 well was drilled with a 1,134 m horizontal lateral and was completed with a 20 stage fracture stimulation. The well was put on production late November 2014 and averaged 185 Bbl per day of light oil for the first 30 days of production. Water cuts are higher than the offsetting wells, indicating that load fluid is still being recovered from the well and maximum oil productive capability has not been achieved to-date.

LGX has a 100% working interest in the well prior to recovery of 200% of the drilling, completion, equipping and tie-in costs, at which point its interest will revert to 80%. The latest two wells, combined with previous production results, confirm the Big Valley (Three Forks) Formation continues to be prospective in the area. LGX believes that 20+ sections its land are prospective for the Big Valley.

Both wells encountered significant hydrocarbon shows in the overlying Banff Formation as indicated by drill cuttings, gas detector readings and strong oil "kicks" while drilling through the zone. The additional oil shows, as well as further geological and seismic interpretation and analysis, confirm the potential for a second play in the shallower Banff Formation. An operator with lands immediately offsetting LGX acreage to the north has achieved strong production results in the Banff Formation.

Further drilling is required to confirm the extent of both plays and to hold lands under LGX's agreement with the Blood Tribe First Nation. Based on field estimates and subject to final, audited results, the company's average daily production in 2014 was approximately 860 Boe per day and the Company achieved a peak rate of production of over 1,200 Boe per day in December 2014. The average and exit rates of production were below previous guidance due to delays in completion timing as the 2014 wells were drilled from the same pad and completion operations could not commence until both wells were drilled.