Yesterday, Legend Oil and Gas Ltd (OTC:LOGL) stock shot a new high on the recent announcement about the signed non-binding letter of intent (LOI) with the Canadian company International Sovereign Energy Corp. (TSE:ISR), (PINK:ISEYF). According to the agreement, LOGL may acquire all land and production interests of ISR's in Canada.

The anticipated closing date of the acquisition is August 31st, because the approval of ISR's shareholders is required.

Parallel to the planned acquisition of ISR was the resignation of Marshall Diamond-Goldberg as a Director of ISR. At present, Mr. Diamond-Goldberg is also a Director, President and Chief Executive Officer of Legend Oil and Gas Ltd. The Board of ISR has accepted his resignation with the following statement: “We are sorry to see Marshall leave our Board. He has been a tremendous asset for our company over the past year in assisting the Company in evaluating potential opportunities.”

Legend Oil and Gas Ltd released the news about the substantial development plans on Tuesday, when the price of shares advanced with 4.33%. Looks like investor appreciation towards LOGL came just yesterday.

The strong upward move of the company's shares continued from the previous day. This time, it has been confirmed by a trading volume of more than one million shares, exceeding six and a half times the daily average turnover.

In addition to the new record in the trading activity of LOGL, was the movement of its share price.

LOGL shot a new 52-week high at $2.63 per share, to close with only two pips lower.

ISR announced the information about the forthcoming acquisition a day before LOGL announcement. This Monday, almost at the end of the trading day, on the Toronto Stock Exchange IIROC halt the trading of ISR due to the pending news. The following day, at the market open, the trade resumption of ISR resulted in a share price soar of 13.33%.

Yesterday, as opposed to the brilliant performance of LOGL, the price of the shares of International Sovereign Energy Corp. rolled down 4.41%.

It looks natural that after LOGL acquired outright one of the most valuable ISR's assets in the name of Marshall Diamond-Goldberg, the released non-binding LOI may become fully binding and closed in time.

The acquisition of the Canadian company gives an opportunity to Legend Oil and Gas Ltd. to acquire assets which, as stated by the company, “are a mix of operated and non-operated oil and gas production properties, as well as a large number of undeveloped leases on which a number of drilling opportunities have been identified.” The associated with these assets probable and proven reserves are approximately 1.0 million barrels of oil equivalent. An annualized cash flow of over $3.0 million is also expected.