Legacy Oil + Gas Inc. provides operational update - Spearfish light oil resource play outperforming

Legacy Oil + Gas Inc. ("Legacy" or the "Company")(TSX: LEG) is pleased to provide an operational update for its activities in the Williston Basin and an interim update of its recent Turner Valley drilling success.

In the first quarter of 2012, the Company drilled 49 (35.1 net) wells all targeting light oil, with a 100 percent success rate.  This total included 13 (10.2 net) horizontal wells in its Spearfish play at Pierson and Bottineau County, North Dakota.  The Company continues to be on track to meet its full year production guidance.

SPEARFISH PLAY

At Pierson, Manitoba, the Company's drilling, completion design and production practices have demonstrated superior results in the Spearfish compared to both the previous operator's drilling and the type curve used in the 2011 year-end independent engineering report. Production from Legacy drilled wells are:

Legacy has achieved these rates while constraining production to maximize ultimate recovery.  All the above wells carry significant fluid levels, with some wells having fluid just below surface.  The Company estimates that initial productive capability of these Pierson wells would be far in excess of the constrained rates shown above. Furthermore, five wells with the longest producing history (147 days on average) have averaged 101 Bbls of oil per day per well over this period. The Company believes these achievements will lead to superior long term performance, higher per well reserve bookings plus additional locations booked.  A production graph depicting these results is included in the Company's latest corporate presentation available at www.legacyoilandgas.com.

Legacy has identified 210 net locations on its lands at Pierson, approximately 77 percent unbooked in the most recent independent reserves report.  Current production in the area is greater than 2,000 Bbls per day and with the installation of a central oil battery and the tie-in of 29 wells thus far, operating costs are anticipated to improve significantly.

At North Dakota, the Company has had similar success in the Spearfish.  Legacy lands in Bottineau County represent a significant light oil development opportunity that has been essentially unbooked in the recent independent reserves report.  Production results from Legacy drilled wells are:

Legacy has achieved these rates while constraining production to maximize ultimate recovery as all wells carry fluid levels.  The Company estimates that initial productive capability of these Bottineau County wells would be in excess of the constrained rates shown above.  Furthermore, three wells with the longest producing history have averaged 77 Bbls of oil per day per well over the initial 180 days. The Company believes these achievements will lead to superior long term performance, higher per well reserve bookings plus additional locations booked.  A production graph depicting these results is included in the Company's latest corporate presentation available at www.legacyoilandgas.com.

The Company has also drilled two stratigraphic wells on the northern portion of its lands confirming net pay of approximately 9 m, porosity of 13.1 percent and original oil in-place of greater than 10 MMBbl per section.

Legacy has identified 230 net locations on the north portion only of its lands in Bottineau County, approximately 97 percent unbooked in the most recent independent reserves report.  This location count could grow significantly as Legacy derisks the opportunity on the southern portion of its lands over the coming years.

The total Spearfish play development drilling inventory of 440 net potential locations (88 percent unbooked) is based on eight wells per section.  Based on other operators' results in the play, Legacy's location count could increase by 50 percent through downspacing.  In addition, the Company is evaluating the waterflood potential in the play and anticipates recovery factors of up to 14 percent, based on analogous pools.

BAKKEN PLAY

At Taylorton, ongoing refinements of the fracture stimulation treatments has led to continual improvements in production rates, with a number of recent wells achieving the highest initial production rates to‐date.  Legacy drilled 9 wells that had 30 day initial production rates in excess of 260 Boe per day per well.  These wells have continued to perform, with 90 day average production rates of 260 Boe per day per well and six month production rates averaging 190 Boe per day per well.  The Company has plans to expand the 2011 waterflood project in 2012.  This pilot waterflood could lead to incremental reserve bookings and lower production decline rates and could be further expanded depending upon results.

At Star Valley, Legacy has applied its leading fracture stimulation design developed in Heward to this area with good success. The two Legacy operated wells brought on in the first quarter or 2012 have 30 day initial rates of 225 Boe per day per well and current production is still approximately 195 Boe per day per well.  As a result, the Company believes the Bakken play boundaries have expanded and has increased its drilling location inventory to more than 50 net wells in Star Valley.

CONVENTIONAL MISSISSIPPIAN

Legacy has remained active drilling conventional Mississippian horizontal wells throughout its SE Saskatchewan properties.  These wells typically cost approximately $1 million to drill, complete, equip and tie-in as they generally are not fracture stimulated and have excellent rates of returns and quick payouts.

At Edenvale, four wells have been drilled targeting the Tilston.  Two of these wells have demonstrated constrained 30 day initial production rates of 125 Boe per day per well and 60 day initial production rates of 115 Boe per day per well.  Both of these wells carry high fluid levels.  The two other wells have recently been brought on production and are producing at approximately 220 Boe per day per well with low water cuts.

At Alameda/Steelman, Legacy's recent wells targeting the Frobisher and Midale have achieved good production results.  The four wells drilled in the first quarter of 2012 have 30 day initial production rates of 215 Boe per day per well.  One well at Alameda continues to produce in excess of 325 Boe per day after more than 40 days of production.  A Steelman well has averaged a constrained 195 Boe per day over the past 76 days.  Both of these wells carry high fluid levels.  The Company has identified a number of follow-up locations in both areas.

At Manor, a step-out horizontal well in the Tilston has averaged 125 Boed per day at a 26 percent water cut over the first 22 days of production.  This well has led to a significant pool extension and the identification of 8 (8 net) potential offset locations on Legacy lands.

TURNER VALLEY INTERIM UPDATE

At Turner Valley, Legacy's first Rundle light oil horizontal well at Hartell #6 has stabilized at approximately 170 Boe per day.  Horizontal wells in Turner Valley have typically come on production with a high water cut and as load fluid is recovered, the water cuts decrease and the oil rates increase.  This phenomena has been observed in the 22 previously drilled grass roots unfrac'd horizontal wells, in Hartell #6 and in the recently completed Legacy drilled horizontals.  In turn, the Company expects the Turner Valley horizontal wells to produce at stable, low decline rates based on the production profile demonstrated by the previously drilled grassroots unfrac'd horizontal wells in the pool.  These wells have been declining at less than five percent per year on average.  Furthermore, 14 previously drilled unfrac'd horizontal wells came on production in excess of 100 Boe per day and two of those came on production in excess of 400 Boe per day.  These 14 wells have recovered between 200,000 and 450,000 Boe to-date, showing the minimum potential of the Legacy fracture stimulated horizontal well drilling program currently underway.

Three additional wells were drilled in late 2011 and were completed and put on production between late January and early March.  These wells are exhibiting the expected improving oil cut profile since coming on production and should be reaching peak oil rates in the next two to six weeks.  The three most recently drilled wells are producing with current capabilities averaging over 325 Bbls per day per well of total fluid.  Current early time average production rates of approximately 100 Boe per day per well are above the type curve used by the independent reserve evaluator in the most recent engineering report and continue to improve.

Legacy has drilled two more wells in the Turner Valley area and currently has two rigs operating.  With an ongoing program, refinement of mud programs and bit selection, Legacy continues to improve its drilling performance in Turner Valley, leading to reduced capital costs. Legacy expects further drilling efficiency gains can be achieved in Turner Valley through ongoing operational refinements and implementation of fit for purpose rigs and equipment.

Legacy is a uniquely positioned, technically driven intermediate oil and natural gas company with a proven management team committed to aggressive, cost-effective growth of light oil reserves and production in large hydrocarbon in-place assets and resource plays.  Legacy's common shares trade on the TSX under the symbol LEG.

Forward-Looking Information - This press release contains forward-looking statements.  More particularly, this press release contains forward-looking statements concerning: (i) the Company being on track to meet its full year production guidance, (ii) the initial productive capability of wells drilled at Pierson, (iii) the Company's belief that the recent performance of wells at Pierson will lead to superior long term performance and higher per well reserves bookings, (iv) the number of identified drilling locations at Pierson, (v) anticipated improvements in operating costs at Pierson, (vi) the initial productive capability of wells drilled at Bottineau County, (vii) the Company's belief that the recent performance of wells at Bottineau County will lead to superior long term performance and higher per well reserves bookings, (viii) the number of identified drilling locations at Bottineau County, (ix) the total number of potential drilling locations in the Company's Spearfish play, * anticipated recovery factors in the Spearfish play, (xi) the Company's plans to expand its waterflood project at Taylorton and the potential impact on reserves bookings and decline rates, (xii) the number of identified drilling locations at Star Valley, and (xiii) the Company's expectations as to the production characteristics of horizontal wells at Turner Valley.

The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Legacy, including expectations and assumptions concerning: (i) the success of future drilling and development activities, (ii) the performance of existing wells, (iii) the performance of new wells, (iv) the availability and performance of facilities, (v) the geological characteristics of Legacy's properties, (vi) the successful application of drilling, completion and seismic technology, (vii) prevailing weather conditions, commodity prices, royalty regimes and exchange rates, (viii) the application of regulatory and licensing requirements and (ix) the availability of capital, labour and services.

Although Legacy believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Legacy can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (which include operational risks in development, exploration and production; risk that there will be delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; the uncertainty of well performance; and health, safety and environmental risks), uncertainty as to weather conditions, uncertainty as to the availability of labour and services, commodity price and exchange rate fluctuations and changes to existing laws and regulations. These and other risks are set out in more detail in Legacy's Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com.  

The forward-looking statements contained in this press release are made as of the date hereof and Legacy undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Meaning of Boe: When used in this press release, Boe means a barrel of oil equivalent on the basis of 1 Boe to 6 thousand cubic feet of natural gas. Boe/d means a barrel of oil equivalent per day. Boe's may be misleading, particularly if used in isolation. A Boe conversion ratio of 1 Boe for 6 thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.