LGX Oil + Gas Inc. reported audited consolidated earnings and operating results for the fourth quarter and year ended December 31, 2013. For the quarter, funds generated by operations were CAD 1,125,835 or CAD 0.01 per basic and diluted share against CAD 463,043 or CAD 0.01 per basic and diluted share a year ago. Net loss was CAD 7,775,472 or CAD 0.09 per basic and diluted share against CAD 7,023,085 or CAD 0.11 per basic and diluted share a year ago. Capital expenditures (excluding acquisitions) were CAD 12,782,541 against CAD 7,379,378 a year ago.

For the year, funds generated by operations were CAD 4,432,350 or CAD 0.05 per basic and diluted share against CAD 324,598 or CAD 0.01 per basic and diluted share a year ago. Net loss was CAD 20,326,748 or CAD 0.23 per basic and diluted share against net income of CAD 3,419,269 or CAD 0.15 per basic and diluted share a year ago. Capital expenditures (excluding acquisitions) were CAD 15,321,445 against CAD 9,936,095 a year ago.

For the quarter, the company produced crude oil and natural gas liquids of 718 Bbls per day against 430 Bbls per day a year ago. Natural gas was 1,482 Mcf per day against 1,528 Mcf per day a year ago. Barrels of oil equivalent were 965 Boe per day against 685 Boe per day a year ago.

For the year, the company produced crude oil and natural gas liquids of 619 Bbls per day against 146 Bbls per day a year ago. Natural gas was 1,673 Mcf per day against 871 Mcf per day a year ago.

The company anticipates a 2014 average production rate of 1,100 Boe per day and exit rate of 1,400 Boe per day.

The company has budgeted to drill two development wells, which are expected to spud in the second and third quarters of 2014, along with performing re-completions on the Blood Reserve based on the 2013 drilling success. Analysis of the 3-D seismic has indicated an area of potentially highly fractured reservoir adjacent to a vertical well drilled in 2012. The company is evaluating this area further for potential re-entry to drill a horizontal leg that would open up another development area on the Blood Reserve.