LGX Oil + Gas Inc. provided further operational updates on the 2015 drilling commitments and production results from recent southern Alberta activity. LGX 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 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). LGX 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% working interest in an undeveloped portion of the Blood Lease excluding thereout all production and reserves. Post the assignment, LGX will retain a 100% working interest (80% after a 200% payout) in the production and reserves, retain an 80% working interest in the 16.75 sections of land surrounding the Company's drilling activity and have a 50% working interest in the remaining 78 sections of the Blood Lease. The recently re-completed well at 6-36-8-24 W4M in the Banff Formation has been producing at an average daily rate of approximately 315 Bbl oil per day in its first 30 days of production and has produced a total of 12,000 barrels of oil.

The 6-36 well is still producing in excess of 350 Bbl of oil per day with less than a 1% water cut and a high fluid level from the un-frac'd Banff Formation. LGX has a 100% interest in the well prior to recovery of 200% of the drilling, completion, equipping and tie-in costs, at which point its interest will revert to 80%. Please refer to important Reader Advisories at the end of this news release.

The positive test results from the 6-36 Banff completion, sustained production from recent competitor offsets and the number of Banff oil shows and tests from previously drilled wells across the area have validated the geophysical and geological model for the play. LGX estimates that up to 40 sections of LGX land offsetting the 6-36 well may be prospective for Banff oil production as well as for the already established Big Valley play.