LGX Oil + Gas Inc. Provides Operational Update

About this update from Permex Petroleum Corp.

[{"type":"text","content":"\n\nCALGARY, July 29, 2015 /CNW/ - LGX Oil + Gas Inc. (\"LGX\" or the \"Company\") (TSXV: OIL) is pleased to provide further operational updates on the 2015 drilling commitments and production results from recent southern Alberta activity.\n\nLGX has executed an agreement with Kainai Energy Limited Partnership by its general partner Kainai Energy Corp. (\"Kainai\") whereby Kainai and LGX shall cooperate on a reasonable commercial efforts basis to seek approval from the Blood Tribe Chief & Council (\"Blood Council\") to continue LGX's contiguous 94.75 section Petroleum and Natural Gas lease #OL-6360 (\"Blood Lease\") beyond the end of its primary term of September 30, 2015 for a further five (5) year term.  The Blood Lease currently provides for an obligation to commence drilling two wells on the Blood Lease on or before September 30, 2015 (the \"Drilling Commitment\").\n\nLGX and Kainai have also agreed to cooperate to seek an amendment to the Blood Lease that allows for a payment, waiver, or other forbearance to be made in lieu of Drilling Commitment.  If the amendment is obtained Kainai shall become responsible for fulfilling, at its sole cost, risk and expense, the obligations under the Blood Lease as amended.  If Kainai satisfies the amended obligations pursuant to the Blood Lease, LGX shall assign Kainai an additional 30 percent working interest in an undeveloped portion of the Blood Lease excluding thereout all production and reserves.  Post the assignment, LGX will retain a 100 percent working interest (80 percent after a 200 percent payout) in the production and reserves, retain an 80 percent working interest in the 16.75 sections of land surrounding the Company's drilling activity and have a 50 percent working interest in the remaining 78 sections of the Blood Lease.\n\nThe Blood Tribe Chief, Charles Weasel Head, stated: \"LGX and its predecessor, Bowood Energy, have had a long and successful relationship working on the Blood Tribe Reserve which we are pleased to see continue under the new joint venture with Kainai.  Through the Blood Tribe's equity ownership interest in Kainai, we look forward to the LGX transaction providing even greater alignment with the Tribe, as well as to the benefits to be achieved for the Tribe through our increased active ownership interest in the Blood Lease....

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