Legend Oil and Gas Ltd. Responds to Short Seller Articles and Provides Company Update

SEATTLE, Nov. 23, 2011 /PRNewswire/ -- Legend Oil and Gas Ltd. (OTCBB: LOGL)

We are issuing this press release in response to two defamatory reports written by Mr. Isaac Silbermann, a short seller, relating to the management and directors of Legend Oil and Gas Ltd.  These articles were published by SeekingAlpha.com and released on November 20 and November 21, 2011.

Mr. Silbermann admits, in both articles released by him to date, to being a short seller of Legend's stock. It appears as though Mr. Silbermann's intent through the generation of these inflammatory articles, is to instill investor panic and create a downward trend in the Company's stock price. A fall in the Company's stock price would result in personal gain for Mr. Silbermann because he is short the stock. 

We strongly and vigorously deny the allegations made by Mr. Silbermann in his articles.  Mr. Silbermann suggests that we have engaged in stock promotion activities.  Specifically, Mr. Silbermann cited three advertising articles written by James Rapholz, Eric Dany, Don McShane, which were paid for by Darvin Consult SA.  Neither of our officers and directors, Mr. Marshall Diamond-Goldberg and Mr. James Vandeberg, nor anyone else acting on our behalf hired or paid for any such stock promotion articles (including these three specific articles), nor do we know or have any relationship, directly or indirectly with Darvin Consult SA , James Rapholz, Eric Dany, or Don McShane.

Legend management has been involved with numerous companies over the past 30 years.  Our officers and directors have never participated in any paid-for reports or promotional items for any companies they are currently, or have been associated with, and give no credence to Mr. Silbermann's inferences whatsoever. Management considers all information written in Mr. Silbermann's articles to be inferences only and believes current and future articles are written for his own personal benefit and with those he may be associated.

Most importantly, Mr. Silbermann fails to present information regarding the fundamentals of Legend Oil and Gas in his articles to date. Legend is executing its business plan and continues to work toward providing value for its shareholders through exploration, exploitation and acquisition in the oil and gas industry.

As we previously reported, on October 20, 2011, Legend closed the acquisition of producing and non-producing oil and gas assets from International Sovereign Energy Corp. ("Sovereign").  The acquisition was closed in Legend's wholly owned subsidiary, Legend Energy Canada Ltd.  Combined with the production from Legend's US assets in the state of Kansas, total production at closing was over 300 BOE/d (barrels of oil equivalent with gas converted at 6:1).  Within the next several days, we will be filing a Current Report on Form 8-K with the SEC to provide pro forma financial statement disclosures for this acquisition.

In support of the development and management of the Canadian assets, Legend has set up a Canadian office in Calgary, Alberta and has hired a petroleum engineer in the position of Manager of Engineering and a Controller to manage the day to day operations of these acquired assets.  It is the intention of Legend to have the Canadian and US assets managed by the Calgary based staff in support of the head office in Seattle, Washington.

Marshall Diamond-Goldberg, President of Legend stated, "The acquisition of the Sovereign assets, coupled with the recent drilling success we have had in Kansas, moves Legend from a start-up E&P company to a functional energy company with a significant inventory of drilling opportunities, a large amount of un-developed acreage to assess for additional exploration and development, complimented by an increased staff with which to administer these and future assets.  Having grown the company from zero production to over 300 BOE/d in less than one year, with the potential to increase that production significantly over the next few years, is a major positive for all Legend shareholders and demonstrates management's commitment and ability to enhance shareholder value through organic growth rather than by promotion as suggested by the short seller's articles, who has personal profit as the motive to knock down our stock price."

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 Canada, southeastern Kansas and northern North Dakota.

Investor Contact
Barry Gross, Investor Relations
[email protected]
361-949-4999

Forward-looking Statements:

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth and business strategy. Words such as "expects," "will," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Company's business; competitive factors in the market(s) in which the Company operates; risks associated with oil and gas operations in the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable," "possible," "recoverable" or "potential" reserves among others, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our filings with the SEC.

SOURCE Legend Oil and Gas Ltd.