LGX Oil + Gas Inc. Announces Closing of Bought Deal Financing

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./

CALGARY, Nov. 7, 2012 /CNW/ - LGX Oil + Gas Inc. ("LGX" or the "Company") (TSXV: OIL) is pleased to announce it has closed its previously announced bought deal financing ("Financing").  Pursuant to the Financing, LGX issued a total of 49.5 million Subscription Receipts at a price of $0.86 each and 4.81 million common shares issued on a flow-through basis at a price of $1.04 each, for gross proceeds of $47,572,400.

The Financing was co-led by FirstEnergy Capital Corp. and Raymond James Ltd. and included a syndicate of underwriters consisting of GMP Securities L.P., Macquarie Capital Markets Canada Ltd., National Bank Financial Inc., Scotia Capital Inc. and BMO Capital Markets Inc.

The net proceeds of the Financing will be used to fund the cash purchase price payable by LGX pursuant to the previously announced acquisition of assets in the Manyberries area of Alberta (the "Acquisition") and for general corporate purposes.

The gross proceeds from sale of the Subscription Receipts will be held in escrow pending the receipt by the escrow agent and the underwriters of notice from LGX that all conditions precedent to the completion of the Acquisition have been satisfied or waived.  If such notice is received on or before December 31, 2012, the proceeds will be released to LGX to fund the Acquisition and each Subscription Receipt will be exchanged for one common share of LGX for no additional consideration.   If the Acquisition is not completed on or before December 31, 2012, holders of Subscription Receipts will receive a cash payment equal to the offering price of the Subscription Receipts and any interest that was earned thereon during the time of escrow.

Legacy Oil + Gas Inc. ("Legacy") currently holds 10 million common shares of LGX, representing approximately 33 percent of the outstanding common shares prior to the Financing.  Legacy purchased 6 million Subscription Receipts under the Financing.  If the Acquisition is completed, Legacy will hold 16 million common shares, representing approximately 18 percent of the outstanding common shares of LGX.  Legacy has filed on SEDAR an early warning report respecting its acquisition of Subscription Receipts pursuant to the Financing, a copy of which will be available for viewing under LGX's profile on SEDAR or may be obtained by contacting LGX as set out below.  Legacy acquired the Subscription Receipts for investment purposes.  Legacy has no current intention to acquire any further securities of LGX, but may do so in the future as circumstances warrant.  Further details concerning Legacy's participation in the Financing are also provided in a material change report that has been filed by LGX on SEDAR.

LGX is a uniquely positioned, technically driven, junior 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. LGX's common shares trade on the TSX Venture Exchange under the symbol OIL.

This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale of securities mentioned in this press release in any state in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

SOURCE: LGX Oil + Gas Inc.

Trent J. Yanko, P.Eng.
President + CEO

LGX Oil + Gas Inc.
4400, 525 - 8^th Avenue S.W.
Calgary, AB T2P 1G1

Telephone: [phone]
Fax: [phone]

Matt Janisch, P.Eng.
Vice-President, Finance + CFO

LGX Oil + Gas Inc.
4400, 525 - 8^th Avenue S.W.
Calgary, AB T2P 1G1

Telephone: [phone]
Fax: [phone]