British Columbia

By OGJ editors
HOUSTON, June 11 – Legacy Oil + Gas Inc., Calgary, is operator of a farmout in the Maxhamish area in Northeast British Columbia that covers 50,000 contiguous prospective acres in a light oil resource play.

The area is prospective for 40° gravity sweet oil from the Lower Cretaceous Chinkeh formation at 1,600 m. The Chinkeh reservoir appears to be an areally extensive sheet sand that has produced minor quantities of oil from five vertical producers.

Legacy has drilled and multistage fracture stimulated two horizontal oil wells and worked over three vertical oil producers. Results of these wells are being assessed, and future plans will be determined accordingly.

The drilling and workover activity has earned Legacy a 41.7% working interest before payout in 8,450 gross acres. The farmout provides for the company to earn, on a rolling option basis, a 61.5% before payout (40% after payout) working interest in the lands.