Legend Oil and Gas Ltd. (OTC: LOGL) said Oct. 28 it has completed a restructuring that will reduce its debt by $11.5 million.
Legend has negotiated a conversion of about $9.6 million of short-term debt to equity. The conversion resulted in a pre-payment penalty of about $1.9 million, which has been issued as a promissory note to an affiliate of Hillair Petroleum Holdings Inc.
Subsequently, the promissory note has been tendered in exchange for the purchase of Legend's Landers-Volunteer oil and gas leases in Kansas.
The transaction is one of the final steps in the company's restructuring, which began nearly 18 months ago, said Andrew Reckles, Legend chairman and CEO.
"Our balance sheet has been strengthened tremendously and we are poised to move the company forward in the oilfield services industry," Reckles said in a statement. "It is our goal to find other acquisitions and roll up a diversified portfolio of services companies in the midstream."
The company's focus will be on "cash flowing" businesses in the major U.S. oil basins, he said.
The Alpharetta, Ga.-based company is focused on E&P in the Midcontinent. It also has a midstream hauling and transportation service business in the Bakken.
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