Legacy Earnings and Announcement of Legacy-Bowood Strategic Alignment

"Anon 1" sent the following for those of you following Legacy. The first link discusses a realignment of Legacy and Bowood. The second link is Legacy's 1Q12 earnings report with a nice discussion of the Spearfish in North Dakota.

http://www.newswire.ca/en/story/973455/bowood-energy-inc-and-legacy-oil-gas-inc-announce-strategic-transaction-to-create-alberta-bakken-focused-producer
Also:

http://www.legacyoilandgas.com/investors/documents/NewsRelease-May14_2012GMK.pdf

Another reader send in another link, the press release of April discussing the Spearfish specifically:
http://www.legacyoilandgas.com/documents/NewsRelease-April2_2012.pdf

The first link:

CALGARY, May 14, 2012 /CNW/ - Bowood Energy Inc. and Legacy Oil + Gas Inc. are pleased to announce that they have entered into an agreement providing for: (i) the sale of Legacy's southern Alberta assets, excluding assets in the greater Turner Valley area, to Bowood ; (ii) the appointment of a new management team and certain new directors of Bowood; (iii) a non-brokered private placement of units of Bowood, and (iv) a rights offering to the Bowood shareholders.

Asset Purchase

The Asset Purchase will consist of the sale of 68,581 net acres of Legacy's undeveloped land in southern Alberta, excluding assets in the greater Turner Valley area, to Bowood for 200,000,000 common shares of Bowood.  The Asset Purchase includes the Bowood/Legacy joint venture land, including the Big Valley oil wells drilled at Kipp and Spring Coulee.  The current Legacy farmin agreement with Bowood will be terminated upon closing of the transaction.  Following the completion of the Asset Purchase, the Private Placement and the Rights Offering, Legacy will own approximately 37% of the outstanding Bowood Shares. 

New Management

The current officers of Bowood will resign and the New Management will be appointed immediately following the completion of the Asset Purchase.  The New Management will consist of Trent Yanko as President and Chief Executive Officer and Matt Janisch as Vice-President, Finance and Chief Financial Officer, each of whom will retain their current positions with Legacy. Mark Franko will be appointed Corporate Secretary. 

The board of directors of Bowood will be reconstituted following completion of the Asset Purchase to be comprised of Trent Yanko as Chairman, James Pasieka, Chris Bloomer, Jim Welykochy and Neil Roszell.  Chris Bloomer and Jim Welykochy are currently directors of Bowood.

 Also, regarding earnings, another report: 

Legacy will acquire a sizeable stake in Bowood Energy Inc. and take over management of the junior company as a result of a land-transfer deal between the two companies.

Calgary-based Legacy will receive about 200 million common shares of Bowood, in exchange for 68,581 acres of undeveloped land — excluding Legacy's assets in the Turner Valley area.
The stock was worth about $24 million when the deal was announced before markets opened Monday.

Legacy will own about 37 per cent of Bowood's common stock, assuming the deal closes as planned. Bowood's current officers will resign and be replaced by a team from Legacy.

A farm-in agreement with Bowood will be terminated when the deal closes.

Trent Yanko will become Bowood's president and chief executive officer. He will also retain those positions at Legacy and become chairman of Bowood's board of directors.

Legacy chief financial officer Matt Janisch adds the same title at Bowood and will be appointed its corporate secretary.

Bowood shares gained half a cent to 12.5 cents on the TSX Venture Exchange shortly after the open Monday. Legacy's dropped 21 cents to $7.45 on the Toronto Stock Exchange.

Legacy also announced Monday that its first-quarter revenue was up 37 per cent from a year ago, rising to just under $95 million. Its net income was $1.3 million or one cent per share for the three months ended March 31.

The profit compared with a loss of $2.8 million or two cents a share in the first quarter of 2011, when Legacy's revenue was $69.3 million.