LGX Oil + Gas Inc. Files Application for Judicial Review Respecting Greater Sage-Grouse Emergency Protection Order

CALGARY, Jan. 3, 2014 /CNW/ - As previously announced, LGX Oil + Gas Inc. ("LGX" or the "Company") (TSXV:OIL) and other producers have received notice from the Federal Minister of Environment of an Emergency Order for the Protection of the Greater Sage-Grouse (the "Order") pursuant to the Species at Risk Act (Canada) ("SARA").  The stated purpose of the Order is to address the imminent threats to the survival and recovery of the Greater Sage-Grouse, including protecting the habitat identified in the Order to help stabilize the Greater Sage-Grouse population and begin its recovery.  The Order will come into force on February 18, 2014, unless the effective date of the Order is postponed.

The Order applies to specified federal and provincial Crown lands.  The majority of LGX's Manyberries property is located on specified Crown lands covered by the Order.  LGX has concluded that the Order has the potential to have a significant adverse effect on LGX's ability to maintain and increase production at Manyberries.  Concurrently with the dissemination of this press release, LGX is filing a material change report, with a copy of the Order appended thereto, which can be viewed on LGX's SEDAR profile at www.sedar.com.

The Order does not affect LGX's operations in the Southern Alberta Bakken play.

LGX advises that, in conjunction with the City of Medicine Hat, it has filed an application with the Federal Court of Canada for judicial review of the Order on the grounds that certain provisions of SARA are ultra vires the jurisdiction of the Parliament of Canada and are of no force and effect, and that the Minister of Environment and Governor General in Council failed to consult with LGX and the City of Medicine Hat, and therefore did not adhere to the requirements of procedural fairness and natural justice in recommending and making the Order.  As a result of the failure to consult, the Minister and Governor General in Council relied on a number of erroneous facts and assumptions, rendering their decisions unreasonable.

LGX and the City of Medicine Hat are seeking an order of the Federal Court quashing the Order and will pursue compensation for losses arising from any impact to their operations at Manyberries.  LGX and the City of Medicine Hat will also seek additional relief to protect their respective interests at Manyberries.

Protection of the Greater Sage-Grouse is a laudable goal and LGX has been in full compliance with the Province of Alberta's  comprehensive legislative and regulatory framework for the protection of the Greater Sage-Grouse which has been in place since 1996.  Furthermore, LGX has both surface leases and mineral leases with the Province of Alberta that are subject to Alberta legislative jurisdiction.  LGX reasonably expects to obtain the support of the Province of Alberta to quash the Order, given the grave infringement on the Province of Alberta's constitutional jurisdiction over surface rights, mineral rights, and regulation of the oil and gas industry at large.

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 combined with high impact exploration potential in southern Alberta.  LGX's common shares trade on the TSX Venture Exchange under the symbol OIL.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: LGX Oil + Gas Inc.

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

Matt Janisch
Vice President, Finance + CFO

4400, 525 - 8^th Avenue S.W.
Calgary, AB T2P 1G1

Telephone: [phone]