Mr. Trent Yanko reports

LGX OIL + GAS INC. ANNOUNCES YEAR-END RESULTS, RESERVE INFORMATION, 2013 GUIDANCE AND FILES ANNUAL INFORMATION FORM

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

Financial and operational highlights

The financial and operational highlights present the historical financial position, results of operations and cash flows of Legacy Oil + Gas's Southern Alberta assets for all prior periods up to and including July 5, 2012, and the results of operations from July 5, 2012, forward to include both the SA assets and LGX Oil + Gas, unless otherwise indicated. This accounting treatment is consistent with the acquisition of the SA assets by Bowood Energy Inc. being classified as a reverse takeover acquisition under international financial reporting standards. Refer to page 14 of management's discussion and analysis of LGX Oil + Gas for the fourth quarter of 2012 for a comparison against prior quarters of Bowood Energy.

                                    FINANCIAL AND OPERATING HIGHLIGHTS

                                                         Three months ended           Year ended          
                                                               Dec. 31,                 Dec. 31,          
(Cdn $, except per-share amounts)                          2012        2011         2012        2011
Financial
Petroleum and natural gas sales, net of royalties    $2,775,518     $87,925   $4,046,322     $87,925
Funds generated by (used in) operations (1)             463,043      26,666      324,598     (25,929)
Per share, basic                                           0.01         n/a         0.01         n/a
Per share, diluted (2)                                     0.01         n/a         0.01         n/a
Net income (loss)                                    (7,023,085)    (66,089)   3,419,269  (2,043,981)
Per share, basic                                          (0.11)        n/a         0.15         n/a
Per share, diluted (2)                                    (0.11)        n/a         0.15         n/a
Operating
Production
Crude oil and natural gas liquids (bbl per day)             430          12          146           3
Natural gas (Mcf per day)                                 1,528          --          871          --
Barrels of oil equivalent (boe per day) (3)                 685          12          291           3
Average realized price
Crude oil and natural gas liquids ($ per bbl)             72.18       94.26        74.10       95.03
Natural gas ($ per Mcf)                                    3.32          --         2.69          --
Barrels of oil equivalent ($ per boe) (3)                 52.71       94.26        45.23       95.03
Netback ($ per boe) (1)
Petroleum and natural gas sales                           52.71       94.26        45.23       95.03
Royalties                                                  8.67       14.62         7.24       14.74
Operating expenses                                        22.41       42.48        19.26       62.76
Transportation expenses                                    2.19        3.11         1.80        3.13
Operating netback ($ per boe) (1)                         19.44       34.05        16.93       14.40
Undeveloped landholdings, gross acres                   209,619     107,944      209,619     107,944
Net acres                                               186,477      68,581      186,477      68,581

(1) Management uses funds generated by operations, net debt and working capital surplus (deficit), 
and operating netback to analyze operating performance and leverage. These terms, as presented, 
do not have a standardized meaning prescribed by international financial reporting standards, and 
therefore they may not be comparable with the calculation of similar measures for other entities. 
(2) In calculating the net income (loss) per share diluted, the company excludes the effect of 
outstanding stock options and share warrants outstanding and uses the weighted-average common 
shares (basic), where the company has a net loss for the period. In calculating, funds generated 
by (used in) operations per share diluted, the company includes the effect of outstanding stock 
options and share warrants using the treasury stock method.  
(3) Boe means barrel of oil equivalent. All boe conversions in this report are derived by 
converting natural gas to oil equivalent at a ratio of 6,000 cubic feet of natural gas to one 
barrel of oil equivalent. Boe may be misleading, particularly if used in isolation. A boe 
conversion rate of one boe to 6,000 cubic feet is based on an energy equivalency conversion method 
primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. 
Given that the value ratio of oil compared with natural gas based on currently prevailing prices 
is significantly different than the energy equivalency ratio of one boe to 6,000 cubic feet, 
utilizing a conversion ratio of one boe to 6,000 cubic feet may be misleading as an indication of 
value.

Accomplishments:

• Closed the purchase from Legacy Oil + Gas of the SA assets, composed of 68,581 net acres of undeveloped land in Southern Alberta for 10 million postconsolidation common shares; in conjunction with the asset purchase, the company's management team was replaced with members from Legacy, and the board of directors was reconstituted;
• Closed the acquisition of highly focused, high-working-interest, operated producing oil assets in southeast Alberta, consisting of light oil production, reserves and undeveloped land in the Manyberries area with attractive transaction metrics of $76,667 per barrels of oil equivalent per day and $15.78 per boe proved plus probable;
• Issued 120 million (six million postconsolidation) units at a price of five cents per unit pursuant to a brokered private placement for net proceeds of approximately $5.7-million; each unit was composed of one preconsolidation common share and one share purchase warrant entitling the holder to purchase one preconsolidation common share at a price of 6.5 cents per share for a period of three years;
• Completed a rights offering to its shareholders resulting in the issuance of an additional 10,639,827 preconsolidation common shares for net proceeds of approximately $532,000; Legacy was not entitled to participate in the rights offering with respect to the shares held by it;
• A proposed name change approved by shareholders to LGX Oil + Gas Inc. from Bowood Energy Inc. and a consolidation of outstanding common shares on a one-to-20 basis; this name change and consolidation of shares were completed, effective as of Aug. 20, 2012;
• Closed a $20-million revolving term demand credit facility plus a $5-million acquisition line with a syndicate of banks;
• Averaged production of 685 barrels of oil equivalent per day in the fourth quarter of 2012.

Operations overview

Alberta Bakken

LGX drilled a vertical exploration well at 6-16-7-23 W4M to a total depth of 2,205 metres. The 6-16 well encountered oil shows through the Big Valley formation and other horizons and has been cored, logged and cased. Completion operations on the vertical well confirmed the producibility of overpressured light oil. The well is currently suspended to gather additional pressure buildup data.

LGX completed a 95-square-mile 3-D seismic program, centred over the company's lands on the Blood reserve. Interpretation of the 3-D seismic has led to the identification of a number of anomalies in the Big Valley and shallower horizons. The company is currently finalizing a minimum of two locations that are anticipated to be spudded in the fall of 2013.

Manyberries

A number of optimization projects have been completed, including oil well restarts and water injection reconfiguration and workovers. Work continues on high-grading Sunburst development drilling locations and further evaluating the horizontal drilling potential in the Swift formation.

Reserves

In accordance with National Instrument 51-101 (standards of disclosure for oil and gas activities), GLJ Petroleum Consultants evaluated, as at Dec. 31, 2012, materially all of LGX's oil, natural gas liquids and natural gas reserves. LGX's annual information form for the year ended Dec. 31, 2012, contains LGX's reserves data and other oil and natural gas information for the period ended Dec. 31, 2012, as mandated by NI 51-101. A copy of the AIF can be obtained under LGX's profile at SEDAR or at the company's website. The summary information provided herein should be read in conjunction with the detailed information in the AIF.

As of Dec. 31, 2012, LGX's total gross proved plus probable reserves base was 4,422,000 boe, an increase of 153 per cent year over year. Total proved plus probable reserves additions were 2,899,000 boe. These additions represent 1,288 per cent of the 225,000 boe produced during 2012. Light and medium oil and natural gas liquids accounted for 84 per cent of the proved plus probable reserves base.

LGX's gross total proved reserves base was 2,458,000 boe. Total proved reserves represent 56 per cent of the total proved plus probable reserves. Proved producing reserves represent 77 per cent of the total proved reserves base. Total proved reserves additions were 1,519,000 boe. These additions represent 675 per cent of the 225,000 boe produced during 2012. Light and medium oil and NGLs accounted for 67 per cent of the total proved reserves base.

The attached gross company reserves summary table is a summary, as at Dec. 31, 2012, of LGX's petroleum and natural gas reserves as evaluated by GLJ. It is important to note that the recovery and reserves estimates provided herein are estimates only. Actual reserves may be greater or less than the estimates provided herein. Reserves information may not add due to rounding.

                                          GROSS COMPANY RESERVES SUMMARY (1)                           
                               (using GLJ Dec. 31, 2012, forecast prices and costs         
                                                as at Dec. 31, 2012)                                      

                                Light and medium oil (Mbbl)  Natural gas (MMcf)  NGLs (Mbbl) Total oil equivalent (Mboe)

Proved producing                                     1,325               3,278           17                       1,894
Proved developed non-producing                          49                 524            2                         139
Proved undeveloped                                     264                 943            3                         424
Total proved                                         1,638               4,745           23                       2,458
Total proved plus probable                           3,138               7,432           38                       4,422

(1) Gross company reserves means the company's working interest reserves before calculations of royalties and 
before consideration of the company's royalty interest.

Guidance for 2013

LGX expects to spend $7.6-million in 2013 focused on light oil development with the majority of capital (78 per cent) directed to drilling, completions and tie-ins on the Alberta Bakken play. The capital spending is distributed as follows: drilling, completions and tie-ins: $5.4-million; recompletions: $1.5-million; land and seismic: $500,000; and other: $200,000.

LGX is planning to drill two gross (1.6 net) wells in 2013, targeting high-quality light oil on the Alberta Bakken play. No capital has been budgeted for acquisitions, although the company continues to evaluate new opportunities, both within and beyond its core areas.

LGX anticipates a 2013 average production rate and exit rate of 900 boe per day. The operational limits used in the budget are as follows:

• Exit production: 900 boe per day (72 per cent light oil and NGL);
• Average production: 900 boe per day (69 per cent light oil and NGL);
• Royalty rate: 17 per cent;
• Operating costs: $19.50 per boe;
• Transportation costs: $2.25 per boe;
• Common shares outstanding (basic, weighted average): 88.7 million.

The reader is cautioned that the production estimates herein include risked production additions resulting from exploration drilling. When the results of this drilling are known with greater certainty, the production estimates will be revised accordingly.

Outlook

An imperative exists to build the company aggressively to a size that, when combined with high-netback oil production, strong balance sheet and substantial exposure to the high-impact Southern Alberta Bakken play, will differentiate LGX from the company's peer group competitors. The Manyberries transaction, associated financing and subsequent significant bank line increase are evidence of LGX's strategy in action.

Manyberries brings the company high-quality light oil assets that can deliver significant development drilling and exploitation opportunities through the application of new technology while contemporaneously building a sustainable, predictable production base that provides internally generated free cash flow to finance LGX's extensive light oil exploration drilling inventory on its dominant landholdings in the Southern Alberta Bakken play.

The company has identified a number of low-cost optimization initiatives at Manyberries for 2013 that include oil well restarts, workovers and water injection reconfiguration, anticipated to have a positive effect on both production and reserves. Work continues on high-grading Sunburst development drilling locations and further evaluating the horizontal drilling potential in the Swift formation.

Positive results from the interpretation of the 95-square-mile 3-D seismic survey shot over LGX lands and the strong production results from the Big Valley and Banff formations recently announced from wells immediately offsetting LGX lands have improved the confidence in Banff and Big Valley as potential emerging light oil resource plays in Southern Alberta. The company is currently finalizing a minimum of two locations that are anticipated to be spudded in the fall of 2013. LGX has more than 167,000 net undeveloped acres in the Alberta Bakken fairway.

The management team at LGX continues to pursue opportunities aggressively that improve the upside potential, sustainability and autonomy of LGX.

Annual general meeting

LGX's annual general meeting is scheduled for May 28, 2013, at 3 p.m., at the Petroleum Club, McMurray room, located at 319 5th Ave. Southwest, Calgary, Alta.

To view LGX's audited financial statements, the related management's discussion and analysis, and the annual information form for the years ended Dec. 31, 2012, Dec. 31, 2011, and Dec. 31, 2010, please visit the company's website or SEDAR. To the extent investors do not have access to the Internet, copies of the audited financials, the related MD&A and the AIF can be obtained on request without charge by contacting LGX at 403-441-2300 or at 4400, 525 8th Ave. Southwest, Calgary, Alta., T2P 1G1.

We seek Safe Harbor.