The agreement will allow all shareholders of Legend to receive one share of New Western Energy common stock for each three shares of Legend common stock.
This is held based upon a value ascribed to each of the Legend shares and New Western Energy shares of $0.09 and $0.27, respectively.
In Canada, Legend Oil, through its wholly-owned subsidiary Legend Energy Canada (LECL) manages assets that include eight oil and gas properties.
The assets, which are situated in Alberta and British Columbia provinces, are producing around 117 barrels of oil equivalent per day (117 BOE/d).
In US, Legend has oil producing properties Piqua and McCune in Woodson and Crawford counties of Kansas.
Piqua, which includes around 1,040 acres of net mineral leases, produces 18 BOPD from 44 active wells, while McCune includes nearly six contiguous leases that are partially developed producing 7 BOPD.
New Western Energy president Javan Khazali said the Legend’s Canadian assets provide an immediate and meaningful increase to company’s production profile.
"The acquisition of Legend is the first of what we expect will be additional similar transactions designed to grow production and revenue," Khazali added.
