Mr. Trent Yanko reports

LEGACY OIL + GAS INC. ANNOUNCES FIRST QUARTER 2012 RESULTS

Legacy Oil + Gas Inc. has filed on SEDAR its audited financial statements and related management's discussion and analysis for the quarter ended March 31, 2012. Selected financial and operational information is outlined below and should be read in conjunction with Legacy's audited financial statements, the related management discussion and analysis, and the annual information form which are available for review at the company's website or SEDAR.

               FINANCIAL AND OPERATIONAL HIGHLIGHTS
                 Three months ended March 31
        (in thousands of dollars, except per share amounts)

                                                    2012           2011
Financial                                                                                   
Petroleum and natural gas sales, net 
of royalties                                     $94,975         69,309
Funds generated by operations                     60,565         43,884
Per share basic                                     0.42           0.33
Per share diluted                                   0.42           0.32
Net income (loss)                                  1,277         (2,854)
Per share basic                                     0.01          (0.02)
Per share diluted                                   0.01          (0.02)
Capital expenditures (excluding acquisitions)    115,210         75,136
Acquisitions (cash consideration)                     30         98,371
Net debt and working capital surplus (deficit)  (430,696)      (256,175)
Operating                                                                                   
Production                                                                                  
Crude oil (bpd)                                   12,370          8,794
Heavy oil (bpd)                                      175            326
Natural gas (Mcf per day)                         12,927         14,751
Natural gas liquids (bpd)                          1,670          1,275
Barrels of oil equivalent (boe per day)           16,370         12,854
Average realized price                                                                      
Crude oil ($ per bbl)                              90.48          86.50
Heavy oil ($ per bbl)                              82.26          64.47
Natural gas ($ per Mcf)                             2.72           4.17
Natural gas liquids ($ per bbl)                    52.87          64.30
Barrels of oil equivalent ($ per boe)              76.79          71.67
Netback ($ per boe)                                                                      
Petroleum and natural gas sales                    76.79          71.67
Royalties                                          13.04          11.75
Operating expenses                                 15.36          14.36
Transportation expenses                             2.47           2.11

Accomplishments:

• Drilled 49 gross (35.1 net) light oil wells in the first quarter of 2012, with a 100-per-cent success rate;

• Increased average production from 12,854 barrels of oil equivalent per day in the first quarter of 2011 to 16,370 boe per day in the first quarter of 2012 (27-per-cent increase); increased average production 10 per cent over the fourth quarter of 2011 rate of 14,880 boe per day; increased crude oil and natural gas liquids weighting of production from 81 per cent in the first quarter of 2011 to 87 per cent in the first quarter of 2012;

• Spearfish production results significantly above previous operator results and 2011 independent engineering report type curve due to the company's drilling, completion design and production practices;

• Turner Valley production rates are above the type curve used by the independent reserve evaluator in the most recent engineering report and continue to improve;

• Continued to improve the company's leading fracture stimulation design resulting in better production results in the Bakken at Taylorton and Star Valley;

• Demonstrated positive Bakken waterflood response at pilot projects in both Taylorton and Heward;

• Generated superior production results in conventional Mississippian plays at Alameda/Steelman, Edenvale and Manor;

• Increased finances generated from operations from $43.9-million in the first quarter of 2011 to $60.6-million in the first quarter of 2012 (38-per-cent increase);

• Increased finances generated from operations per share (diluted) from 32 cents in the first quarter of 2011 to 42 cents in the first quarter of 2012 (31-per-cent increase);

• Increased earnings from a net loss of $2.9-million in the first quarter of 2011 to net earnings of $1.3-million in the first quarter of 2012 (145-per-cent increase);

• Increased earnings from a net loss of two cents per share (diluted) in the first quarter of 2011 to net earnings of one cent per share in the first quarter of 2012 (150-per-cent increase);

• Reduced operating costs from $16.40 per boe in the fourth quarter of 2011 to $15.36 per boe for the first quarter of 2012 (6-per-cent decrease); reduced total operating costs (operating plus transportation costs) from $18.96 in the fourth quarter of 2011 to $17.83 for the first quarter of 2012 (6-per-cent decrease);

• Reduced general and administrative expense from $3.09 per boe in the first quarter of 2011 to $2.68 per boe in the first quarter of 2012 (13-per-cent decrease);

• Increased operating netback from $43.45 per boe in the first quarter of 2011 to $45.92 per boe in the first quarter of 2012 (6-per-cent increase).

Operations overview

In the first quarter of 2012, the company drilled 49 (35.1 net) wells, all targeting light oil, with a 100-per-cent success rate. This total included 13 (10.2 net) horizontal wells in its Spearfish play at Pierson and Bottineau county, North Dakota.

Legacy provided a detailed operations update in its April 2, 2012, news release that incorporated well and production results to the end of the first quarter 2012. Spring breakup began mid-March, limiting activity in the last two weeks of the quarter. However, the company continues to be on track to meet its full year production guidance

Spearfish

At Pierson, Manitoba, the company's drilling, completion design and production practices have demonstrated superior results in the Spearfish compared with both the previous operator's production results and the type curve used in the 2011 year-end independent engineering report. Production up to the end of the first quarter 2012 from Legacy drilled wells had a 90-day average of 95 barrels oil per day per well.

Legacy has achieved these rates while constraining production to maximize ultimate recovery, leading 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 the company's website. Legacy has identified 210 net locations on its lands at Pierson, approximately 77 per cent unbooked in the most recent independent reserves report.

Installation of a central oil battery with treating capacity of 15,000 barrels of fluid per day and 5,000 barrels of oil per day was completed in the quarter and 29 wells were tied in to this facility. With the reduction of the number of single well batteries, field 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 up to the end of the first quarter 2012 from Legacy drilled wells had a 90-day average of 98 barrels of oil per day per well.

Legacy has achieved these rates while constraining production to maximize ultimate recovery, leading 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 the company's website.

The company converted one well to salt water disposal and began construction of a central oil battery. The majority of the remaining 2012 drilling program will be from pads located along a central gathering line corridor enabling faster on-production cycle times and the reduction of field operating costs.

The company has also drilled two stratigraphic wells on the northern portion of its lands and final core analysis now confirms net pay of approximately 11.4 metres, porosity of 14.7 per cent and original oil in-place of greater than 12 million barrels per section. Legacy has identified 230 net locations on the northern portion only of its lands in Bottineau county, approximately 97 per cent unbooked in the most recent independent reserves report. This location count could grow significantly as Legacy de-risks 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 per cent unbooked) is based on eight wells per section. Based on other operators' results in the play, Legacy's location count could increase by 50 per cent through downspacing. In addition, the company is evaluating the waterflood potential in the play and anticipates recovery factors of up to 14 per cent, based on analogous pools.

Bakken

At Taylorton, the pilot waterflood project has shown signs of waterflood response, with a flatter decline profile and increased bottom-hole pressure in the two offsetting producing wells. This pilot waterflood could lead to incremental reserve bookings and lower production decline rates, and will be expanded later in 2012.

At Heward, the pilot waterflood project initiated in November, 2011, has already demonstrated waterflood response as the oil production rate in one offsetting well has increased 500 per cent since the commencement of the pilot. Plans are under way for expansion of the pilot waterflood project in the later part of 2012.

Conventional Mississippian

Legacy has remained active drilling conventional Mississippian horizontal wells throughout its southeastern 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. Success has been achieved in the Midale, Frobisher, Alida, Tilston and Souris Valley formations.

Turner Valley

At Turner Valley, Legacy's first Rundle light oil horizontal well at Hartell No. 6 has stabilized and the recently completed horizontal wells continue to demonstrate decreasing water cuts and increasing oil rates, as expected.

Two of the recently completed wells had productive capability in excess of the existing artificial lift equipment necessitating upgrades to optimize the fluid withdrawal rates from the wells and these upgrades have led to a corresponding increase in oil rates. The company is reviewing the artificial lift options on the remaining wells to improve production run times and maximize production rates. On average production rates 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 completion operations are under way. With a continuing 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 continuing operational refinements and implementation of fit-for-purpose rigs and equipment.

Events after the reporting period

On May 4, 2012, Legacy's banking syndicate, led by BMO Capital Markets and including National Bank, Bank of Nova Scotia, ATB Financial, Canadian Imperial Bank of Commerce, JP Morgan Chase Bank NA and Toronto-Dominion Bank, increased the borrowing base from the previous $450-million to $525-million. The increase is a result of the company's high netback light oil reserves, long reserve life and increased production over the past year, and continues to provide Legacy with significant financial flexibility with which to conduct its operations. Legacy announced on May 14, 2012, the company entered into an agreement to sell certain undeveloped lands and minor production in Southern Alberta to Bowood Energy Inc. in exchange for 194 million common shares of Bowood. The agreement stipulates, among other things, that Bowood's management team would be replaced by Trent Yanko as president and chief executive officer and Matt Janisch as vice-president finance and chief financial officer, and that Bowood would be managed by Legacy under a services agreement.

Outlook

Over the past 12 quarters, Legacy has grown production per share 63 per cent or 18 per cent per year. Its producing assets have performed favourably and its new production additions have met or exceeded its expectations.

Its goal at Legacy is to deliver 10 to 15 per cent per-share growth per year, spending cash flow plus its growth rate, for the next three to five years. This sustainable model is designed to deliver superior returns over the near and long term in a low-risk platform, and is characterized by:

• More than 1,200 net development locations for light oil;

• 2012 production is forecast to grow 29 per cent year over year compared with 2011

• Development drilling focused capital program for 2012 (83 per cent to drilling, completion, equipping, tie-in);

• Fast-tracking waterflood projects in the Bakken, Torquay (Three Forks) and the Spearfish to build significant net asset value while moderating corporate declines and providing additional opportunity creation.

The operational momentum and success that started in the latter part of 2011 have continued into 2012, with Legacy having drilled 49 gross (35.1 net) wells to date, with a 100-per-cent success rate. Continuous refinement of mapping, completion programs and production strategies has provided a number of positive results:

• Spearfish production has outperformed the independent reserve evaluators proved plus probable type curve.

• More than 385 net locations are unbooked in the Spearfish which could grow to nearly 600 net locations with inclusion of all Spearfish lands held in North Dakota.

• The infill horizontal multistage fracture stimulation program in Turner Valley has generated positive early results.

• Bakken pilot waterflood projects at Taylorton and Heward are demonstrating waterflood response.

• Downspaced drilling is under way for waterflood implementation in the Torquay at Frys.

• Success in conventional Mississippian at Alameda, Edenvale, Manor and Steelman.

In 2012, the company is demonstrating better capital efficiencies compared with 2011 which will further improve economics and provide risk protection to the capital program:

• Weather has been more typical compared with 2011;

• Contracted fit-for-purpose horizontal drilling rigs and equipment (top drives, larger pumps);

• Moved to more manufacturing-type development in some of its emerging plays such as the Spearfish;

• Costs have stabilized for key services.

Legacy's light oil assets and strong financial position not only provide downside mitigation in periods of lower commodity prices or volatility, as seen in the first quarter of 2012 where oil price differentials experienced higher-than-normal volatility and went through a period of rapid widening and contraction, but also provide upside torque to the continued operational success achieved in the past nine months due to:

• Production that is 87 per cent weighted to light oil and natural gas liquids;

• First quarter 2012 operating netbacks of $45.92 per boe;

• Operating costs have decreased and the expectation is that this trend will to continue throughout 2012;

• Expanded banking facility with surplus capacity;

• A significant portion of the oil price differential widening can be attributed to pipeline and short-term seasonal issues such as refinery maintenance coupled with supply and demand factors in the U.S. PADD II market. Current differentials have returned to more normal levels, although Legacy expects that near-term price volatility will continue.

We seek Safe Harbor.