SIN Holdings Inc. Completes Acquisition, Effects Forward Stock Split and Changes Name to Legend Oil and Gas, Ltd.
01 December 2010 - 8:05AM
Marketwired
Legend Oil and Gas, Ltd. (OTCBB: LOGL) ( the
"Company") President Marshall Diamond-Goldberg is pleased to
announce the closing of the Company's first acquisition of oil and
gas assets in the state of Kansas, the forward split of shares on
the basis of 20 to 1 and the change of the Company's name to Legend
Oil and Gas, Ltd.
THE ACQUISITION
On October 29, 2010, the Company successfully closed the
acquisition of producing oil leases from Piqua Petro Inc. of Piqua
Kansas. The acquired leases contain 1,040 acres of oil producing
land carrying a 12.5% royalty burden. Current production from the
leases averages approximately 12 barrels of oil per day. Purchase
price for the acquisition was $625,000 plus minor closing costs.
The acquisition metrics for the purchase are just over $52,000 per
producing barrel. Projected net operating income (NOI) from the
leases is estimated at approximately $140,000 per year yielding a
purchase price of 4.4 times NOI (based upon average oil price of
$70.00 per barrel). Internal estimates of 50,000 barrels of proven
producing oil reserves is based upon current decline rates and
yields an acquisition cost of $12.50 per barrel.
Based upon the current price of oil and the upside potential as
determined through geological review of the project, the Company
expects that the economic return from this project will increase
over the next several years. Some of the development options being
considered include; infill drilling, water flooding, well bore
cleanout and additional drilling on lightly developed producing
leases. Mr. Diamond-Goldberg suggested that: "there appears to be
real potential to add to the production and reserve base associated
with these leases by expanding the drilling which was previously
done on them. No significant development has taken place on the
leases since 2006. Initial activity will focus on the maintenance
of existing wells and the tie-in of shut in locations, with
drilling activity planned for the spring when weather
improves."
THE FORWARD SPLIT
On November 29, 2010 a forward split of the Company's common
stock became effective. As a result all shareholders of record on
October 4, 2010 will receive an additional 19 shares for each share
owned on that date. Certificates for the additional shares have
been mailed . Shareholders should continue to hold their existing
certificates.
THE NAME CHANGE
Also on November 29, the name of the Company was changed to
Legend Oil and Gas, Ltd. which better reflects the current business
activities of Company.
About Legend Oil and Gas, Ltd.
Legend Oil and Gas, Ltd. is a managed risk, oil and gas
exploration/exploitation, development and production company with
activities currently focused on leases in southeastern Kansas.
Investor Contact Marshall Diamond-Goldberg President
403-617-2071
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