Legend Oil & Gas 10-Q 19 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 19, 2015
Document And Entity Information
Entity Registrant Name	Legend Oil & Gas, Ltd.
Entity Central Index Key	1,140,414
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		878,400,629
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 934,507	$ 701,848
Restricted cash	85,000	85,000
Accounts receivable	664,211	$ 72,406
Inventory	227,674
Prepaid expenses	171,998
Prepaid interest	261,224
Other current assets	269,871
Total current assets	2,614,485	$ 859,254
Property, plant and equipment	4,558,691	453,375
Oil and gas properties - net (full cost method)	1,230,046	3,639,916
Total assets	8,403,222	4,952,545
Current Liabilities
Accounts payable	1,562,215	52,413
Accounts payable related party	451,333	577,000
Accrued interest	109,674	50,427
Short term debt, net of unamortized discount of $485,801 and $-0-, respectively	10,945,837
Convertible debt, net of unamortized discount of $157,031 and $-0-, respectively	1,022,969
Current portion of long term debt		409,856
Other current liabilities	15,566
Common Stock Payable	334,559
Total current liabilities	$ 14,442,153	1,089,696
Embedded derivative liabilities		1,128,667
Long term debt, net of debt discount of $-0- and $53,924, respectively	$ 15,470	6,119,245
Asset retirement obligations	108,585	202,586
Total liabilities	$ 14,566,208	$ 8,540,194
Commitments and contingencies
Stockholders' Deficit
Common stock - 1,000,000,000 shares authorized; $0.001 par value; 878,400,624 and 187,583,273 shares issued and outstanding, respectively	$ 878,400	$ 187,583
Additional paid-in capital	34,743,105	27,227,181
Accumulated deficit	(41,784,491)	(31,002,413)
Total stockholders' deficit	(6,162,986)	(3,587,649)
Total liabilities and stockholders' deficit	$ 8,403,222	$ 4,952,545

CONSOLIDATED BALANCE SHEETS (u3

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Debt discount	$ 0	$ 53,924
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	878,400,624	187,583,273
Common stock, shares outstanding	878,400,624	187,583,273
Convertible Debt [Member]
Debt discount	$ 157,031	$ 0
ShortTerm Debt [Member]
Debt discount	$ 485,801	$ 0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Oil revenue	$ 70,711	$ 112,936	$ 240,726	$ 406,407
Service revenue	2,325,758		2,325,758
Total revenue	2,396,469	112,936	2,566,484	406,407
Operating expenses:
Cost of service revenue	1,123,545		1,123,545
General and administrative	2,480,937	818,100	3,138,192	1,329,959
Production expenses	77,879	31,404	283,046	189,510
Depletion, depreciation, and amortization	219,137	49,850	275,421	208,012
Accretion of asset retirement obligation	2,400	8,549	4,785	$ 23,223
Impairment of oil and gas properties	45,719		452,277
Loss on sales of oil and gas properties			892,131
Total operating expenses	3,949,617	907,903	6,169,397	$ 1,750,704
Operating loss	(1,553,148)	(794,967)	(3,602,913)	(1,344,297)
Other income (expense)
Interest expense	$ (393,553)	(887,853)	(703,531)	(1,339,238)
Change in fair value of embedded derivative liabilities		1,179,328	(6,551,333)	1,392,496
Other income	$ 75,699		75,699
Total other income (expense)	(317,854)	291,475	(7,179,165)	53,258
Loss from continuing operations	(1,871,002)	(503,492)	$ (10,782,078)	(1,291,039)
Loss from discontinued operations		(429,450)		(429,450)
Net loss	$ (1,871,002)	(932,942)	$ (10,782,078)	(1,720,489)
Foreign translation adjustment		27,412		110,586
Total comprehensive loss	$ (1,871,002)	$ (905,530)	$ (10,782,078)	$ (1,609,903)
Net loss per common shares-basic and diluted	$ 0	$ (0.01)	$ (.02)	$ (0.01)
Weighted average number of common shares outstanding-basic and diluted	673,265,280	137,595,793	433,092,859	127,128,572

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (10,782,078)	$ (1,720,489)
Loss from discontinued operations		(429,450)
Loss from continuing operations	$ (10,782,078)	(1,291,039)
Adjustments to reconcile net loss to cash flows provided by (used in) operating activities:
Stock-based compensation		821,702
Depletion, depreciation and amortization	$ 275,421	$ 208,012
Loss on sales of oil and gas properties	892,131
Accretion of asset retirement obligation	4,785	$ 23,223
Impairment of oil and gas properties	452,277
Amortization of discounts on notes payable	181,067	$ 749,994
Change in fair value of embedded derivative liabilities	6,551,333	(1,392,496)
Changes in operating assets and liabilities:
Accounts receivable	471,824	43,172
Prepaid expenses and other assets	(503,961)	$ (101,532)
Inventory	(20,237)
Accounts payable	821,237	$ 82,680
Accounts payable - related party	(125,667)
Other current liabilities	(74,760)
Accrued interest	59,247
Net cash flows used in operating activities - continuing operations	$ (1,797,381)	$ (856,335)
Net cash flows provided by operating activities - discontinued operations		792,213
Net cash flows used in operating activities	$ (1,797,381)	$ (64,122)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of oil and gas properties	1,665,000
Cash paid for the purchase of fixed assets	(473,220)
Cash paid for the purchase of Black Diamond Energy Holdings	(1,064,661)
Cash paid for oil and gas property development costs	(518,418)	$ (235,540)
Net cash provided by investing activities- continuing operations	$ (391,299)	(235,540)
Net cash flows provided by investing activities- discontinued operations		450,316
Net cash flows provided by investing activities	$ (391,299)	214,776
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from convertible debt	2,310,000	$ 735,758
Proceeds from notes payable	1,000,000
Payments on notes payable	(888,661)
Net cash flows used in financing activities- continuing operations	$ 2,421,339	$ 735,758
Net cash flows used in financing activities- discontinued operations		(575,741)
Net cash flows from financing activities	$ 2,421,339	160,017
Change in cash and cash equivalents before effect of exchange rate changes	$ 232,659	310,671
Effect of exchange rate changes		110,586
Net change in cash and cash equivalents	$ 232,659	421,257
Cash and cash equivalents, beginning of period	701,848	64,283
Cash and cash equivalents, end of period	934,507	$ 485,540
Cash paid during the period for:
Interest	8,427
NON-CASH INVESTING AND FINANCING ACTIVITIES
Change in estimate asset retirement obligations	85,856
Accrual of oil and gas development costs	231,540
Fair value of derivative liability extinguished upon conversion of preferred stock to common stock	7,680,000
Conversion of preferred stock to common stock	$ 600,000

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF OPERATIONS	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND DESCRIPTION OF OPERATIONS	NOTE 1 - ORGANIZATION AND DESCRIPTION OF OPERATIONS Description of Business Legend Oil and Gas, Ltd. (the “Company”) has two operating segments including an oil and gas exploration, development and production company and an oil and gas trucking service company. The Company’s oil and gas property interests are located in the United States (in the States of Kansas and Oklahoma). The Company’s focus is on acquiring producing and non-producing oil and gas interest and developing oil and gas properties that the Company currently owns. During the six months ended June 30, 2015, the Company sold its working interest in two properties locating in Kansas. The Company currently owns working interests in two oil and gas properties, with one property located in Kansas and the second in Oklahoma. In April 2015, the Company acquired Black Diamond Energy Holdings LLC, a Delaware limited liability company (“Black Diamond”). Black Diamond is a trucking and oil and gas services company that operates in North Dakota. On May 1, 2015, the Board of Directors approved an amendment to the Company’s Articles of Incorporation. The amendment removed restrictions that prohibited the holder of the Company’s convertible preferred stock from converting and holding more than 19.99% of the Company’s outstanding common stock. Legend’s sole preferred stockholder converted its convertible perpetual preferred stock of 600 shares into common stock totaling 600 million shares. The preferred stockholder now owns approximately 63% of the Company’s common stock.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements for 2014 include the accounts of the Company, and our wholly-owned subsidiary Legend Energy Canada Ltd. (“Legend Canada”) for 2014 activity. The consolidated financial statements for the six months ended June 30, 2014 include the accounts of the Company and our wholly owned subsidiary, Black Diamond and its wholly-owned subsidiaries Maxxon Energy, LLC and Treeline Diesel Center, LLC, for the period since acquisition (April 4, 2015) through June 30, 2015. Legend Canada amounts have been deconsolidated due to their discontinued operations and bankruptcy as more fully described in Note 7. Intercompany transactions and balances have been eliminated in consolidation. Basis of Presentation The accompanying consolidated financial statements of the Company, have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto contained in Legend’s latest Annual Report filed with the SEC on Form 10-K and the Form 8-K/A filed on June 19, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate disclosures contained in the audited financial statements for the most recent fiscal year, as reported in the Form 10-K filed with the SEC on April 6, 2015, have been omitted. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Management’s judgments and estimates in these areas are to be based on information available from both internal and external sources, including engineers, geologists, consultants and historical experience in similar matters. The more significant reporting areas impacted by management’s judgments and estimates are fair values of the Company’s equity-linked instruments, accruals related to oil and gas sales and expenses, estimates of future oil and gas reserves, estimates used in the impairment of oil and gas properties, and the estimated future timing and cost of asset retirement obligations. Actual results could differ from the estimates as additional information becomes known. The carrying values of oil and gas properties are particularly susceptible to change in the near term. Changes in the future estimated oil and gas reserves or the estimated future cash flows attributable to the reserves that are utilized for impairment analysis could have a significant impact on the future results of operations. Accounts Receivable Accounts receivable typically consist of oil and gas receivables, as well as customer receivables, and are presented on the consolidated balance sheets net of allowances for doubtful accounts. The Company establishes provisions for losses on accounts receivable for estimated uncollectible accounts and regularly review collectability and establish or adjust the allowance as necessary using the specific identification method. Account balances that are deemed uncollectible are charged off against the allowance. No allowance for doubtful accounts was deemed necessary by management at June 30, 2015 and December 31, 2014. Comprehensive Income For operations outside of the U.S. that prepare financial statements in currencies other than U.S. dollars, the Company translates the financial statements into U.S. dollars. Results of operations and cash flows are translated at average exchange rates during the period, and assets and liabilities are translated at end of period exchange rates, except for equity transactions and advances not expected to be repaid in the foreseeable future, which are translated at historical costs. The effects of exchange rate fluctuations on translating foreign currency assets and liabilities into U.S. dollars are accumulated as a separate component in other comprehensive income (loss). Accumulated other comprehensive income (loss) consists entirely of foreign currency translation adjustments for the three and six month period ended June 30, 2014. There were no foreign currency translation adjustments for the three and six month period ended June 30, 2015. Inventory Inventories consist primarily of diesel truck parts. Inventories are stated at the lower of cost or market, using the average cost method. Cost includes the purchase price of the inventory from our vendors. All items are considered raw materials related to service repairs. No impairment of inventory was recorded as of June 30, 2015. Property and Equipment Property and equipment is stated at cost and depreciated using the straight-line method over 5 years. Repairs and maintenance are charged to expense as incurred. Repairs to trucks and trailers that include new equipment that will either increase the value of the equipment or extend the useful life of the equipment are capitalized and depreciated using the straight-line method over 5 years. The Company has estimated salvage values on all equipment at 10% of the equipment’s original cost. The cost and accumulated depreciation of property and equipment retired or otherwise disposed of are eliminated from the respective accounts and any resulting gain or loss is included in operating expenses. Long-lived assets, such as property and equipment to be held and used in operations, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets are grouped at the lowest level at which identifiable cash flows are largely independent when assessing impairment. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Recoverability of long-lived assets is dependent upon, among other things, the Company's ability to continue to achieve profitability in order to meet its obligations when they become due. In the opinion of management, based upon current information, the carrying amount of long-lived assets will be recovered by future cash flows generated through the use of such assets over their respective estimated useful lives. Full Cost Method of Accounting for Oil and Gas Properties We have elected to utilize the full cost method of accounting for our oil and gas activities. In accordance with the full cost method of accounting, all costs associated with the acquisition, exploration, and development of oil and gas reserves, including directly related overhead costs and related asset retirement costs are capitalized into a cost center. Our cost centers consist of the Canadian cost center and the United States cost center. All capitalized costs of oil and gas properties within each cost center, including the estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves. Excluded from this amortization are costs associated with unevaluated properties, including capitalized interest on such costs. Unevaluated property costs are transferred to evaluated property costs at such time as wells are completed on the properties or management determines that these costs have been impaired. Oil and gas properties without estimated proved reserves are not amortized until proved reserves associated with the properties can be determined or until impairment occurs. The cost of these properties is assessed quarterly, on a field-by-field basis, to determine whether the properties are recorded at the lower of cost or fair market value. Sales of oil and gas properties are accounted for as adjustments of capitalized costs with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil and gas attributable to a cost center, in which case the gain or loss is recognized in income. In determining whether adjustments to capitalized costs result in a significant alteration, capitalized costs within the cost center are allocated between the reserves sold and reserves retained on the same basis used to compute amortization, unless there are substantial economic differences between the properties sold and those retained. When economic differences between properties sold and those retained exist, capitalized costs within the cost center are allocated on the basis of the relative fair values of the properties in determining whether adjustments to capitalized costs result in a significant alteration. For six months ended June 30, 2015, Legend sold two of its properties (McCune and Piqua), resulting in a loss on the sale of $892,131. Full Cost Ceiling Test At the end of each quarterly reporting period, the cost of oil and gas properties in each cost center are subject to a “ceiling test” which basically limits capitalized costs to the sum of the estimated future net revenues from proved reserves, discounted at 10% per annum to present value, based on current economic and operating conditions, at the end of the period, plus the cost of properties not being amortized, plus the lower of cost or fair market value of unproved properties included in costs being amortized, less the income tax effects related to book and tax basis differences of the properties. If the cost of oil and gas properties exceeds the ceiling, the excess is reflected as a non-cash impairment charge to earnings. The impairment charge is permanent and not reversible in future periods, even though higher oil and gas prices in the future may subsequently and significantly increase the ceiling amount. There was no impairment charge for the six months ended June 30, 2015. For the six months ended June 30, 2014, the Company recognized impairment on its Canadian oil and gas properties. Asset Retirement Obligations We record the fair value of a liability for an asset retirement obligation in the period in which the asset is acquired and a corresponding increase in the carrying amount of the related long-lived asset if a reasonable estimate of fair value can be made. The associated asset retirement cost capitalized as part of the related asset is allocated to expense over the asset’s useful life. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized. The asset retirement obligation is recorded at its estimated fair value and accretion is recognized over time as the discounted liability is accreted to its expected settlement value. Fair value is determined by using the expected future cash outflows discounted at our credit-adjusted risk-free interest rate. Oil and Gas Revenue Recognition The Company uses the sales method of accounting for its oil and gas revenue recognition. Revenue from production on properties in which the Company shares an economic interest with other owners is recognized on the basis of our interest. Revenues are reported on a gross basis for the amounts received before taking into account production taxes, royalties, and transportation costs, which are reported as production expenses. Under the sales method, revenues are recognized based on the actual volumes of gas and oil sold to purchasers at a fixed or determinable price, when delivery has occurred and title has transferred, and if collectability of the revenue is probable. Delivery occurs and title is transferred when production has been delivered to a purchaser’s pipeline or truck. The volume sold may differ from the volumes we are entitled to, based on our individual interest in the property. The Company utilizes a third-party marketer to sell oil and gas production in the open market. As a result of the requirements necessary to gather information from purchasers or various measurement locations, calculate volumes produced, perform field and wellhead allocations and distribute and disburse funds to various working interest partners and royalty owners, the collection of revenues from oil and gas production may take up to 45 days following the month of production. Therefore, the Company may make accruals for revenues and accounts receivable based on estimates of our share of production. Since the settlement process may take 30 to 60 days following the month of actual production, our financial results may include estimates of production and revenues for the related time period. The Company will record any differences between the actual amounts ultimately received and the original estimates in the period they become finalized. Oil Hauling and Service Revenue Recognition Our wholly-owned subsidiary, Black Diamond recognizes revenue based on the relative transit time of the freight transported and as other services are provided. Accordingly, a portion of the total revenue that will be billed to the customer once a load is delivered is recognized in each reporting period based on the percentage of the freight pickup and delivery service that has been completed at the end of the reporting period. The Company records revenues on the gross basis at amounts charged to its customers because the Company is the primary obligor, a principal in the transaction, it invoices its customers and retains all credit risks, and maintains discretion over pricing. Additionally, the Company is responsible for the selection of third-party transportation providers. Independent contractor providers of revenue equipment are classified as purchased transportation expense on the consolidated statements of operations. Black Diamond also has a service center which performs repairs and maintenance to our fleet of tractors and trailers, as well as repair and maintenance for independent third party operators. Revenue for third party repairs and corresponding cost of repairs is recorded at the time the repairs are completed. Stock-based Compensation The Company measures compensation cost for stock-based awards at fair value and recognize it as compensation expense over the service period for awards expected to vest. Stock-based compensation expense is also recognized upon cancellation of awards that were initially expected to vest. Compensation cost (a non-cash expense) is recorded as a component of general and administrative expenses in the consolidated statements of operations, net of an estimated forfeiture rate. The Black-Scholes option pricing model is used to estimate the fair value of employee stock option awards at the date of grant, which requires the input of highly subjective assumptions, including expected volatility and expected life. Changes in these inputs and assumptions can materially affect the measure of estimated fair value of our share-based compensation. These assumptions are subjective and generally require significant analysis and judgment to develop. When estimating fair value, some of the assumptions will be based on, or determined from, external data and other assumptions may be derived from our historical experience with stock-based payment arrangements. The appropriate weight to place on historical experience is a matter of judgment, based on relevant facts and circumstances. The Company estimates volatility by considering the historical stock volatility. The Company has opted to use the simplified method for estimating expected term, which is generally equal to the midpoint between the vesting period and the contractual term. Net Loss Per Common Share The computation of basic net loss per common share is based on the weighted average number of shares that were outstanding during the period, including contingently redeemable common stock. The computation of diluted net loss per common share is based on the weighted average number of shares used in the basic net loss per share calculation plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding. Potentially dilutive common shares include warrants to purchase shares of common stock (0 and 32,413,067 for the six months ended June 30, 2015 and 2014 respectively), and convertible debentures (39,333,333 and 289,628,300 for the six months ended June 30, 2015 and 2014, respectively). Derivative Financial Instruments The Company evaluates financial instruments for freestanding or embedded derivatives. Derivative instruments that do not qualify for permanent equity classification as the instruments have been determined not to be indexed to the Company’s stock are recorded as liabilities at fair value, with changes in value recognized as other income (expense) in the consolidated statements of operations in the period of change. Derivative liabilities are categorized as either short-term or long-term based upon management’s estimates as to when the derivative instrument may be realized or based upon the holder’s ability to realize the instrument. Fair Value Measurements The Company measures fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. We utilize a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable market inputs such as quoted prices in active markets; Level 2: Observable market inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs where there is little or no market data, which require the reporting entity to develop its own assumptions. The carrying amounts of financial assets and liabilities such as cash, accounts receivable and accounts payable approximate their fair values (determined based on level 1 inputs in the fair value hierarchy) due to the short term nature of these instruments. Recently Issued Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 amends previous guidance to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company expects that the affected amounts on its balance sheets will be reclassified within the balance sheets to conform to this standard. The Company does not expect that the adoption of this ASU will have a material impact on its financial statements. Subsequent Events The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration.

GOING CONCERN

GOING CONCERN	6 Months Ended
	Jun. 30, 2015
Going Concern
GOING CONCERN	NOTE 3 – GOING CONCERN The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has incurred a loss from continuing operations of approximately $10.8 million for the six months ended June 30, 2015, had negative working capital of approximately $11.8 million, and an accumulated deficit of approximately $41.8 million at June 30, 2015. Additionally, the Company is dependent upon obtaining additional debt and/or equity financing to roll-out and scale its planned principal business operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters consist principally of seeking additional debt and/or equity financing combined with expected cash flows from current oil and gas assets held and additional oil and gas assets that it may acquire. There can be no assurance that the Company’s efforts will be successful. The financial statements do not include any adjustments that may result from the outcome of this uncertainty.

ACQUISITION OF BLACK DIAMOND

ACQUISITION OF BLACK DIAMOND	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
ACQUISITION OF BLACK DIAMOND	NOTE 4 – ACQUISITION OF BLACK DIAMOND On April 3, 2015, the Company entered into a Membership Interest Purchase Agreement (“MIPA”) with Sher Trucking, LLC (“Sher”), Albert Valentin (“Valentin”) and Steven Wallace (“Wallace”), which made up all of the members of Black Diamond to purchase all of the outstanding membership interests of Black Diamond. The Company paid $1,500,000 in cash to Sher; issued a secured promissory note to Sher in the amount of $2,854,000; issued 90,817,356 shares of the Company’s common stock to Valentin, valued at $526,741; agreed to issue 57,682,644 shares of the Company’s common stock to Wallace valued at $334,559 which, as of this report date, has not been issued by mutual agreement between Wallace and the Company, as such common stock issued may change as a result of the working capital adjustment discussed below. The common stock due Wallace has been recorded as common stock payable in the accompanying financial statements. The principal amount of the note to Sher bears interest at five percent (5%) per annum and is due and payable in full on April 3, 2016. The note is secured by certain rolling stock trucks and trailers owned by subsidiaries of Black Diamond. The Company also paid $125,000 to Sher after closing as an advance against an anticipated purchase price adjustment related to the working capital changes of Black Diamond. The post-closing payment has been recorded as a prepaid deposit and will be included into the final purchase price upon the final agreed upon working capital adjustments. The purchase price is subject to an adjustment based on the amount of net working capital of Black Diamond at closing. In the event the net working capital is either greater than or less than the estimated net working capital at closing, Sher and Wallace will share the positive or negative adjustment. Any adjustment for Sher will be in cash. Any adjustment for Wallace will be a reduction of or increase to the common stock payable to Wallace. This adjustment is in the process of being adjudicated per the MIPA. Any amounts due to or from Sher are unknown at the date of the issuance of these financial statements. The following tables summarize the purchase price and allocation of the purchase price to the net assets acquired: Purchase price on April 4, 2015 Cash paid $ 1,500,000 Promissory note 2,854,000 Fair value of common stock issued 861,300 Total purchase price $ 5,215,300 Fair value of net assets at April 4, 2015 Cash $ 435,339 Accounts receivable 1,063,629 Inventory 207,437 Prepaid and other current assets 199,132 Property and equipment 3,855,721 Total assets 5,761,258 Accounts payable (455,632 ) Other current liabilities (90,326 ) Total liabilities (545,958 ) Net assets acquired $ 5,215,300 Below are the condensed pro forma statements of operations for Legend and Black Diamond presented as if the entities were combined for the six-month period ended June 30, 2015. Historical Legend Oil and Gas, Ltd. Historical Black Diamond Energy Combined Revenue $ 240,726 $ 5,140,348 $ 5,381,074 Operating expenses: Cost of service revenue — 2,406,556 2,406,556 Production expenses 283,046 — 283,046 General and administrative expenses 1,628,745 2,236,476 3,865,221 Depletion, depreciation and amortization expense 85,011 466,694 551,705 Accretion of asset retirement obligation 4,785 — 4,785 Impairment of oil and gas properties 452,277 — 452,277 Loss on sale of oil and gas properties 892,131 — 892,131 Total operating expenses 3,345,995 5,109,726 8,455,721 Net income (loss) from operations (3,105,269 ) 30,622 (3,074,647 ) Other income (expense): Interest expense (703,070 ) — (703,070 ) Change in fair value of embedded derivative liabilities (6,551,333 ) — (6,551,333 ) Other Income/Expense 78,537 — 78,537 Total other income (expense) (7,175,866 ) — (7,175,866 ) Net (loss) income $ (10,281,135 ) $ 30,622 $ (10,250,513 ) Shares outstanding 787,583,273 90,817,356 878,400,629 Net income (loss) per common share $ (0.01 ) $ 0.00 $ (0.01 )

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5 – PROPERTY AND EQUIPMENT June 30, December 31, Drilling rig $ 465,000 $ 465,000 Trucks, trailers, and vehicles 4,120,693 — Furniture and equipment 208,247 — Property and equipment, at cost 4,793,940 — Accumulated depreciation (235,249 ) (11,625 ) Property and equipment, net $ 4,558,691 $ 453,375 During the six months ended June 30, 2015, the Company acquired $3,855,721 in property and equipment through the acquisition of Black Diamond. The Company also purchased $473,220 in additional property and equipment during the six months ended June 30, 2015. The Company has assigned a useful life of 5 years to all assets and is depreciating them using the straight-line method less estimated salvage costs. The Company recorded depreciation expense of $223,624 during the six months ended June 30, 2015.

OIL AND GAS PROPERTIES

OIL AND GAS PROPERTIES	6 Months Ended
	Jun. 30, 2015
Oil and Gas Property [Abstract]
OIL AND GAS PROPERTIES	NOTE 6 - OIL AND GAS PROPERTIES The amount of capitalized costs related to oil and gas properties and the amount of related accumulated depletion, depreciation and amortization are as follows: June 30, 2015 December 31, 2014 Oil and gas properties, subject to amortization $ 1,268,003 $ 3,948,679 Accumulated depletion, depreciation and amortization, (37,957 ) (308,763 ) Net oil and gas properties, subject to amortization 1,230,046 3,639,916 Oil and gas properties, not subject to amortization — — Total oil and gas properties, net $ 1,230,046 $ 3,639,916 During the six months ended June 30, 2015, the Company sold its Piqua property for approximately $1.5 million, and its McCune property for $165,000. As the sale significantly altered the relationship between the Company’s capitalized costs and its total proved reserves, we recorded a loss on the sale of $892,131. The Company disbursed the proceeds to Hillair Capital Investments LP, the mortgage holder, in the amounts described in Note 11. During the six months ended June 30, 2015, the Company acquired working interests in the Van Pelt lease for $100,000. The Company incurred development costs on the Van Pelt lease of $402,277 during the six months ended June 30, 2015. At June 30, 2015, the Company determined that the property was impaired and recorded a loss on impairment of $452,277 which reduced the Van Pelt lease to its estimated realizable value of $50,000. During the six months ended June 30, 2015, the Company incurred drilling and development costs on its Landers and Volunteer lease of $245,444. During the six months ended June 30, 2015, the Company recorded depletion expense of $51,797. On January 28, 2014, the Company sold its Inga property located in British Columbia, Canada for net proceeds of CAD$435,000 (USD 450,316). The proceeds from the sale were accounted for as an adjustment to the capitalized costs in the Canadian cost center with no gain or loss recognized.

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION	6 Months Ended
	Jun. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]
ASSET RETIREMENT OBLIGATION	NOTE 7 – ASSET RETIREMENT OBLIGATION The following table reconciles the value of the asset retirement obligation for the six months ended June 30, 2015 and 2014: June 30, 2015 June 30, 2014 Opening balance, January 1 $ 202,586 $ 196,767 Additions for purchase of oil and gas properties 85,856 — Accretion expense 4,785 23,223 Change in estimate (2,400 ) 44,657 Reductions for sales of oil and gas properties (182,242 ) — Ending balance, June 30 $ 108,585 $ 264,647

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 8 – RELATED PARTY TRANSACTIONS Prior to our CEO assuming any role in the Company, including his former Chief Restructuring Officer duties, Northpoint Energy Partners (“NPE”), of which our CEO is a principal, was engaged by the owners of Black Diamond to obtain a buyer for Black Diamond. Our Board of Directors reviewed this agreement between NBE and the sellers, and deemed the acquisition by the Company to be appropriate, and negotiated a brokerage fee with Northpoint of $225,000 to be paid by the Company. Such amount was accrued on the accompanying financial statements as an amount due to a related party. During the three-month period ended June 30, 2015, the related party amounts due to NPE were reduced by payments of $180,400, with additions for brokerage fees on the acquisition of Black Diamond of $225,000, with a remaining balance due NPE at June 30, 2015 of $451,600.

NOTE PAYABLE TO BANK

NOTE PAYABLE TO BANK	6 Months Ended
	Jun. 30, 2014
Note Payable To Bank
NOTE PAYABLE TO BANK	NOTE 9 – NOTE PAYABLE TO BANK On April 25, 2014, the Company received a Notice of Intention to Enforce Security from the Bank of Canada relating to a revolving credit facility. Under the notice, the Bank stated that it intended to enforce its rights against Legend Canada under the CA$6,000,000 ($8.35 million USD) Acknowledgement of Debt Revolving Demand Credit Agreement, dated August 15, 2011; the General Assignment of Book Debts, dated October 19, 2011; the CAD$25,000,000 ($33 million USD) The bridge demand loan that was in place in prior periods was retired in July 2013. During the quarter ended September 30, 2014, the Company placed its wholly owned subsidiary, Legend Canada, into the Canadian bankruptcy system. The bankruptcy estate of Legend Canada owned oil and gas properties in Western Canada (Berwyn, Medicine River, Boundary Lake, and Wildmere in Alberta, and Clarke Lake and Inga in British Columbia). Legend Canada was placed under the control of KPMG Inc., as Trustee, in the bankruptcy proceedings. The Company has written off all assets and liabilities of Legend Canada, resulting in income from discontinued operations at the parent level of Legend Oil and Gas, Ltd. as it no longer controls, nor has responsibility for any operations or asset dispositions of Legend Canada. In August 2014, the Company and Bank executed a Mutual Release and Discharge in consideration for $250,000 and the note was fully retired.

NOTE PAYABLE

NOTE PAYABLE	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
NOTE PAYABLE	NOTE 10 – NOTES PAYABLE HILLAIR CAPITAL INVESTMENTS, L.P.- NONCONVERTIBLE NOTES On January 21, 2015, the Company issued an 8.5% Senior Secured Debenture (the “ Debenture The expenses were recorded as a debt discount and are being amortized over the term of the Debenture. The Company amortized $15,802 of debt discount as additional interest expense for the six months ended June 30, 2015. At June 30, 2015, the principal balance of the Debenture was $400,000. On April 2, 2015, the Company entered into a Securities Purchase Agreement with Hillair pursuant to which it issued an 8% Original Issue Discount Senior Secured Debenture to the Company in the aggregate amount of $2,499,975, payable in full on May 16, 2016. After taking into account the original issue discount and legal and diligence fees of $549,975 reimbursed to the Hillair, the net proceeds received by the Company was $1,950,000. The Company amortized $119,385 of debt discount as additional interest expense for the six months ended June 30, 2015. At June 30, 2015, the principal balance of the Debenture was $2,499,975. SHER TRUCKING On April 3, 2015, as part of the Black Diamond acquisition, the Company entered into a secured promissory note with Sher Trucking in the amount of $2,854,000, with an interest rate of 5% per annum, due in full on April 3, 2016. At June 30, 2015, the balance due on this note is $2,854,000. NWTR On January 23, 2014, the Company entered into an Agreement and Plan of Merger with New Western Energy Corporation (“NWTR”). On April 1, 2014, the Company issued a note payable for cash proceeds of $75,000 to NWTR. The significant terms of the agreement were that if the planned merger was terminated, or the merger did not occur by December 31, 2014, the Company was obligated to repay the $75,000 within 60 days of such termination, or on February 28, 2015, whichever came first. There was no interest due and payable on this note. In May 2014, the merger was terminated by mutual consent. As a result, the Company became obligated to repay the $75,000 to NWTR. During the year ended December 31, 2014, the Company repaid $10,000 of this amount, and had a balance of $65,000 outstanding as of December 31, 2014. On January 6, 2015, the Company and NWT R entered into a settlement agreement whereby the Company agreed to repay NWTR $10,000 on or before January 7, 2015, with the remainder payable commencing February 15, 2015, in five (5) monthly installments of $9,168. The Company made total payments of $38,336 on the balance owed to NWTR during the six months ended June 30, 2015, with the amount due on this note of $26,664 at June 30, 2015. This note has no interest provision. RIG PURCHASE AGREEMENT The Company purchased a drilling rig at a price of $465,000. This asset purchase was financed through a down payment of $150,000, and a note payable of $315,000, at 6%, per annum, with monthly payments of $18,343, including principal and interest, through April 2016. The Company made total payments for the three months ended June 30, 2015, of approximately $55,000. Principal and interest paid during that period was approximately $52,000 and $3,000, respectively. The balance due on this note is $178,485 at June 30, 2015. COMMUNITY TRUST BANK In October 2014, the Company entered into an agreement with Community Trust Bank, for a loan in the amount of $85,100 at 2.4% per annum with regular monthly payments of $1,508 of principal and interest through September 2015 and one balloon payment of $70,400 in October 2015. This note is secured by a certificate of deposit in the amount of $85,000 currently classified as restricted cash. The Company made total payments during the three months ended June 30, 2015 of approximately $7,000 on the principal balance of the loan. The balance due on this note is $ 75,400 at June 30, 2015.

CONVERTIBLE DEBT

CONVERTIBLE DEBT	6 Months Ended
	Jun. 30, 2015
Convertible Debt
CONVERTIBLE DEBT	NOTE 11 – CONVERTIBLE DEBT JMJ CAPITAL During 2013, the Company received proceeds of $125,000 under a note payable agreement with JMJ Capital. The note provides for borrowings of up to $300,000, is repayable beginning April 2014, and carries an original issue discount of 10%. No interest accrues on the note principal if borrowings are repaid within 90 days from the date advanced. If repaid within 90 days, a one-time interest charge of 12% accrues. The conversion price of the note is the lesser of $0.05 or 60% of the lowest trade price of the Company’s common stock for 25 days prior to the conversion. On the day of issuance, the note was convertible into 5,339,558 shares of common stock. The intrinsic value of the beneficial conversion feature was determined to be $124,430. As a result, the discount of the note, including original issue discount, totaled $136,930 which was amortized over the term of the note. During the three months ended March 31, 2014, the Company borrowed an additional $30,000 from JMJ under the above note payable agreement. The Company received net proceeds of $26,500. During the year ended December 31, 2014, JMJ converted $100,000 of the outstanding principal and $7,520 in accrued interest into 20,755,608 shares of the Company’s common stock. The Company also paid $12,500 of the outstanding principal balance. As of June 30, 2015, the balance on the JMJ note payable was $0. The Company recorded $2,475 in interest expense related to the amortization of the debt discount for the six months ended June 30, 2015. HILLAIR CAPITAL INVESTMENTS, L.P. CONVERTIBLE DEBT Beginning in July 2013, the Company entered into a series of debentures with Hillair Capital Investments, L.P. (“Hillair”) to finance the growth of Legend’s oil and gas operations. These debentures totaled approximately $6 million, and had various derivative instruments including conversion features and warrants, all with down-round protection. In October 2014, the Company engaged in discussions with Hillair to consolidate all debentures into one debenture with a fixed maturity date. On November 13, 2014, the Company and Hillair entered into a debt and warrant restructuring agreement. All of the existing debt outstanding and accrued interest owed to Hillair was restructured and consolidated into one new debenture (the “Restructured Debenture”). The Restructured Debenture has a face value of $6,060,000, with an original issue discount of $60,000, carries an interest rate of 8.5% per annum and is due and payable in one payment on March 1, 2016. Further, in exchange for warrants to purchase an aggregate of 474,258,441 shares of the Company’s common stock currently held by Hillair; Hillair agreed to purchase 600 shares of convertible preferred stock with at a price of $1,000 per share, for a total amount of $600,000 in cash proceeds received in November 2014. On March 30, 2015, the Company received $1,425,000 in net cash proceeds from the sale of its Piqua oil and gas properties. As a condition to secure the security interest in the property held by Hillair, the Company paid the full amount of the proceeds against the principal and accrued interest balances on the Restructured Debenture. Hillair applied $713,429 as a reduction in principal balance, $568,885 as a deposit to apply against accrued interest for the year ending December 31, 2015 and a prepayment penalty of $142,686. The Company amortized $22,911 of debt discount as additional interest expense for the six months ended June 30, 2015. At June 30, 2015, the principal balance of the Debenture was $5,346,571. On April 28, 2015, the Company entered into a Securities Purchase Agreement with Hillair pursuant to which it issued an 8% Original Issue Discount Senior Secured Convertible Debenture to the Company in the aggregate amount of $840,000, payable in full on May 16, 2016. The Debenture is convertible into up to 28,000,000 shares of common stock at a conversion price of $0.03 per share. After taking into account the original issue discount and legal and diligence fees of $140,000 reimbursed to Hillair, the net proceeds received by the Company was $700,000. The Company amortized $22,969 of debt discount as additional interest expense for the six months ended June 30, 2015. At June 30, 2015, the principal balance of the Debenture was $840,000. On June 30, 2015, the Company entered into a Securities Purchase Agreement with Hillair pursuant to which it issued an 8% Original Issue Discount Senior Secured Convertible Debenture to the Company in the aggregate amount of $340,000, payable in full on March 1, 2016. The Debenture is convertible into up to 13,333,333 shares of common stock at a conversion price of $0.03 per share. After taking into account the original issue discount and legal and diligence fees of $40,000 reimbursed to Hillair, the net proceeds received by the Company was $300,000. As this Debenture occurred on June 30, 2015, there was no amortization of debt discount recorded, nor was there any interest expense for the period. At June 30, 2015, the principal balance of the Debenture was $340,000. The Hillair Debentures are all secured by a mortgage, security agreement and financing statement in Kansas granting a lien in certain leases and leasehold estates and any other applicable property of the Company in Kansas to secure the obligations of the Company to the Purchaser evidenced by each Debenture.

EMBEDDED DERIVATIVE LIABILITIES

EMBEDDED DERIVATIVE LIABILITIES	6 Months Ended
	Jun. 30, 2015
Embedded Derivative Liabilities
EMBEDDED DERIVATIVE LIABILITIES	NOTE 12 – EMBEDDED DERIVATIVE LIABILITIES The following table is a reconciliation of embedded derivative liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2015 and 2014: June 30, 2015 June 30, 2014 Beginning balance $ 1,128,667 $ 1,161,284 Conversions (7,680,000 ) — Changes in fair value 6,551,333 (496,730 ) Ending balance $ — $ 664,554 At December 31, 2014, the Company determined the non-dilution provision embedded into the convertible perpetual preferred stock resulted in a derivative liability with a fair value of $2,324,184 on the date of issuance. On May 1, 2015, Hillair converted this preferred stock into 600 million shares of the Company¹s common stock at $0.001 per share with a fair value of $7,680,000 based on the market price on the conversion date. As a result of the conversion of all of the Company’s outstanding Series A Convertible Preferred Stock on May 1, 2015, the Company no longer recorded any derivative liabilities at June 30, 2015. The entire embedded derivative liability has been reclassified to both common stock and additional paid in capital as a result of the conversion to 600 million shares of common stock. During the six months ended June 30, 2014, the Company valued the embedded derivative liabilities of conversion features in convertible notes payable using a Black-Scholes model. A summary of quantitative information with respect to valuation methodology, estimated using a Black-Scholes model, and significant unobservable inputs used for the Company’s embedded derivative liabilities for the six months ended June 30, 2014 is as follows: Expected dividend yield — Strike price $ .0001-.001 Expected stock price volatility 112 % Risk-free interest rate 0.13 Expected term (in years) 0.33

STOCKHOLDERS_ EQUITY (DEFICIT)

STOCKHOLDERS’ EQUITY (DEFICIT)	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
STOCKHOLDERS’ EQUITY (DEFICIT)	NOTE 13 – STOCKHOLDERS’ EQUITY (DEFICIT) Convertible Preferred Stock As of December 31, 2014, the Company had issued and outstanding 600 shares of its convertible preferred stock. This convertible, preferred stock has a 0% dividend rate. The shares of preferred stock are convertible into 600 million shares of the Company¹s common stock at $0.0001 per share, and have a non-dilution provision. The shares were converted to 600 million shares of common stock in May 2015. Common Stock Issuances In April 2015, the Company issued 90,817,356 shares of common stock to Albert Valentin as part of its purchase of Black Diamond. The stock had a fair value of $435,924. The fair value of the common stock was determined using the closing price of the shares on the settlement date. In March 2014, the Company issued 1,220,798 shares of common stock with a fair value of $51,746 to Hillair in payment of accrued interest on convertible debt agreements. The fair value of the common stock was determined using the closing price of the shares on the settlement date During the six months ended June 30, 2014, the Company issued 54,246,508 shares of common stock to various employees and consultants in exchange for services. The stock had a fair value of $799,100. The fair value of the common stock was determined using the closing price of the shares on the settlement date. Stock Incentive Plan and Information Statement On May 15, 2014, the Company created the 2014 Stock Incentive Plan and reserved 40,000,000 shares of common stock for issuance thereunder. The 2014 Stock Incentive Plan also provides the issuance of stock awards and grant of options to purchase shares of the Company’s common stock. The Company did not issue any stock options or warrants during the periods ended June 30, 2015 or 2014. All common stock reserved under this plan has been issued as of the date of this report to either employees, contractors or financial partners of the Company.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
Commitments And Contingencies
COMMITMENTS AND CONTINGENCIES	NOTE 14 – COMMITMENTS AND CONTINGENCIES The Company is not aware of any pending or threatened legal proceedings, nor is the Company aware of any pending or threatened legal proceedings, effecting any current officer, director or control shareholder, or their affiliates. As part of its regular operations, the Company may become party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning its’ commercial operations, products, employees and other matters. Although the Company can give no assurance about the outcome of these or any other pending legal and administrative proceedings and the effect such outcomes may have on the Company, the Company believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by insurance, will not have a material adverse effect on the Company’s financial condition or results of operations. The Company owes $10,766 in delinquent property taxes, penalties, and interest to the state of North Dakota from operations during the year 2012. We entered into a payment plan with the state of North Dakota whereby we pay them $500 per month until the above balance is fully repaid. On October 28, 2013, RR Donnelly & Sons Company filed a complaint against the Company seeking to collect $68,913, plus interest for services rendered on or before November 30, 2012. This claim has been satisfactorily resolved between the parties, and Legend is remitting $2,500 per month in settlement of this claim, until such balance is fully repaid. During the six months ended June 30, 2015, the Company made principal payments of $15,000. The Company recorded interest of approximately $3,000 on the settlement liability for the six months ended June 30, 2015. As of June 30, 2015, the Company had a principal balance of approximately $42,000 outstanding on the settlement liability. On June 19, 2014, Cairncross & Hempelmann filed a complaint against the Company seeking to collect $35,787, plus interest for services rendered. This claim has been satisfactorily resolved between the parties, and Legend is remitting $2,000 per month in settlement of this claim, until such balance is fully repaid. During the six months ended June 30, 2015, the Company made principal payments of $12,000. The Company recorded interest of approximately $1,000 on the settlement liability for the six months ended June 30, 2015. As of June 30, 2015, the Company had a principal balance of approximately $11,000 outstanding on the settlement liability. The Company leases office space on a month-to-month basis, with monthly rental payments due of approximately $2,200. The Company leases office space, a diesel repair shop, and employee housing under non-cancelable lease agreements. The leases provide that we pay taxes, insurance, utilities, and maintenance expenses related to the leased assets. Future minimum lease payments for these non-cancelable operating leases as of June 30, 2015 are as follows: 2015 $ 70,300 2016 120,000 2017 90,000 Thereafter — Total net minimum payments $ 280,300

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
SEGMENT INFORMATION	NOTE 15 – SEGMENT INFORMATION The Company has the following reporting segments: Legend is an oil and gas exploration, development and production company. The Company’s oil and gas property interests are located in the United States (in the States of Kansas and Oklahoma). The Company’s focus is on acquiring producing and non-producing oil and gas interest and developing oil and gas properties that the Company currently owns. Black Diamond is a trucking and oil and gas services company that operates in North Dakota. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performances based on profit or loss from operations before income taxes, not including nonrecurring gains and losses and foreign exchange gains and losses. Legend's reportable segments are strategic business units that offer different technology and marketing strategies. Below is summarized segment financial data for both Legend and Black Diamond as of and for the three and six months ended June 30, 2015. Summarized Statements of Operations for the Three Months Ended June 30, 2015 Legend Black Diamond Total Revenue $ 70,711 $ 2,325,758 $ 2,396,469 Total operating expenses $ 1,126,215 $ 2,823,402 $ 3,949,617 Operating loss $ (1,055,504 ) $ (497,644 ) $ (1,553,148 ) Total other income (expense) $ (314,555 ) $ (3,299 ) $ (317,854 ) Net loss $ (1,370,059 ) $ (500,943 ) $ (1,871,002 ) Summarized Statements of Operations for the Six Months Ended June 30, 2015 Legend Black Diamond Total Revenue $ 240,726 $ 2,325,758 $ 2,566,484 Total operating expenses $ 3,345,995 $ 2,823,402 $ 6,169,397 Operating loss $ (3,105,269 ) $ (497,644 ) $ (3,602,913 ) Total other income (expense) $ (7,175,866 ) $ (3,299 ) $ (7,179,165 ) Net loss $ (10,281,135 ) $ (500,943 ) $ (10,782,078 ) Summarized Balance Sheets at June 30, 2015 Legend Black Diamond Total Total assets $ 2,708,312 $ 5,694,910 $ 8,403,222 Total liabilities $ 13,469,492 $ 1,096,716 $ 14,566,208

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	6 Months Ended
	Jun. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	NOTE 16 – DISCONTINUED OPERATIONS On May 9, 2014, the Bank of Canada was granted a Consent Receivership Order in Canada, whereby the Bank appointed a receiver to take all legally appropriate means to recover the amounts Legend Canada defaulted on, including the managing of its assets, potential sales of its assets and other strategic measures to appropriately remediate the amounts due to the Bank. In August 2014, the Company and Bank signed a Mutual Release and Discharge. The Company paid the Bank $250,000 and obtained a release which, among other things, stipulated that the Bank immediately release the guaranty of the Bank’s debt by Legend US, and the Uniform Commercial Code (“UCC”) filing placed by the Bank on Legend US (the parent company guarantee). All such releases were obtained as of December 31, 2014. During the six months ended June 30, 2015 and 2014, Legend Canada did not have ongoing operations. During the six months ended June 30, 2014, the Company impaired certain oil and gas properties held by Legend Canada in the amount of $429,450.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 17 - SUBSEQUENT EVENTS On July 16, 2015, the Company entered into a Securities Purchase Agreement with Hillair pursuant to which it issued an 8% Original Issue Discount Senior Secured Convertible Debenture to the Company in the aggregate amount of $340,000, payable in full on March 1, 2016. The Debenture is convertible into up to 11,333,333 shares of Common Stock at a conversion price of $0.03 per share. After taking into account the original issue discount and legal and diligence fees of $40,000 reimbursed to Hillair, the net proceeds received by the Company was $300,000. In August 2015, we resolved the complaint related to the termination of Marshall Diamond-Goldberg, our former President, Chief Operating Officer and Director. The settlement amount totaled $105,000, payable in seven (7) $15,000 installments, which coincides with his 12 month term of employment as stated in his letter of employment with the Company.

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements for 2014 include the accounts of the Company, and our wholly-owned subsidiary Legend Energy Canada Ltd. (“Legend Canada”) for 2014 activity. The consolidated financial statements for the six months ended June 30, 2014 include the accounts of the Company and our wholly owned subsidiary, Black Diamond and its wholly-owned subsidiaries Maxxon Energy, LLC and Treeline Diesel Center, LLC, for the period since acquisition (April 4, 2015) through June 30, 2015. Legend Canada amounts have been deconsolidated due to their discontinued operations and bankruptcy as more fully described in Note 7. Intercompany transactions and balances have been eliminated in consolidation.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements of the Company, have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto contained in Legend’s latest Annual Report filed with the SEC on Form 10-K and the Form 8-K/A filed on June 19, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate disclosures contained in the audited financial statements for the most recent fiscal year, as reported in the Form 10-K filed with the SEC on April 6, 2015, have been omitted.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Management’s judgments and estimates in these areas are to be based on information available from both internal and external sources, including engineers, geologists, consultants and historical experience in similar matters. The more significant reporting areas impacted by management’s judgments and estimates are fair values of the Company’s equity-linked instruments, accruals related to oil and gas sales and expenses, estimates of future oil and gas reserves, estimates used in the impairment of oil and gas properties, and the estimated future timing and cost of asset retirement obligations. Actual results could differ from the estimates as additional information becomes known. The carrying values of oil and gas properties are particularly susceptible to change in the near term. Changes in the future estimated oil and gas reserves or the estimated future cash flows attributable to the reserves that are utilized for impairment analysis could have a significant impact on the future results of operations.
Accounts Receivable	Accounts Receivable Accounts receivable typically consist of oil and gas receivables, as well as customer receivables, and are presented on the consolidated balance sheets net of allowances for doubtful accounts. The Company establishes provisions for losses on accounts receivable for estimated uncollectible accounts and regularly review collectability and establish or adjust the allowance as necessary using the specific identification method. Account balances that are deemed uncollectible are charged off against the allowance. No allowance for doubtful accounts was deemed necessary by management at June 30, 2015 and December 31, 2014.
Comprehensive Income	Comprehensive Income For operations outside of the U.S. that prepare financial statements in currencies other than U.S. dollars, the Company translates the financial statements into U.S. dollars. Results of operations and cash flows are translated at average exchange rates during the period, and assets and liabilities are translated at end of period exchange rates, except for equity transactions and advances not expected to be repaid in the foreseeable future, which are translated at historical costs. The effects of exchange rate fluctuations on translating foreign currency assets and liabilities into U.S. dollars are accumulated as a separate component in other comprehensive income (loss). Accumulated other comprehensive income (loss) consists entirely of foreign currency translation adjustments for the three and six month period ended June 30, 2014. There were no foreign currency translation adjustments for the three and six month period ended June 30, 2015.
Inventory	Inventory Inventories consist primarily of diesel truck parts. Inventories are stated at the lower of cost or market, using the average cost method. Cost includes the purchase price of the inventory from our vendors. All items are considered raw materials related to service repairs. No impairment of inventory was recorded as of June 30, 2015.
Property and Equipment	Property and Equipment Property and equipment is stated at cost and depreciated using the straight-line method over 5 years. Repairs and maintenance are charged to expense as incurred. Repairs to trucks and trailers that include new equipment that will either increase the value of the equipment or extend the useful life of the equipment are capitalized and depreciated using the straight-line method over 5 years. The Company has estimated salvage values on all equipment at 10% of the equipment’s original cost. The cost and accumulated depreciation of property and equipment retired or otherwise disposed of are eliminated from the respective accounts and any resulting gain or loss is included in operating expenses. Long-lived assets, such as property and equipment to be held and used in operations, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets are grouped at the lowest level at which identifiable cash flows are largely independent when assessing impairment. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Recoverability of long-lived assets is dependent upon, among other things, the Company's ability to continue to achieve profitability in order to meet its obligations when they become due. In the opinion of management, based upon current information, the carrying amount of long-lived assets will be recovered by future cash flows generated through the use of such assets over their respective estimated useful lives.
Full Cost Method of Accounting for Oil and Gas Properties	Full Cost Method of Accounting for Oil and Gas Properties We have elected to utilize the full cost method of accounting for our oil and gas activities. In accordance with the full cost method of accounting, all costs associated with the acquisition, exploration, and development of oil and gas reserves, including directly related overhead costs and related asset retirement costs are capitalized into a cost center. Our cost centers consist of the Canadian cost center and the United States cost center. All capitalized costs of oil and gas properties within each cost center, including the estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves. Excluded from this amortization are costs associated with unevaluated properties, including capitalized interest on such costs. Unevaluated property costs are transferred to evaluated property costs at such time as wells are completed on the properties or management determines that these costs have been impaired. Oil and gas properties without estimated proved reserves are not amortized until proved reserves associated with the properties can be determined or until impairment occurs. The cost of these properties is assessed quarterly, on a field-by-field basis, to determine whether the properties are recorded at the lower of cost or fair market value. Sales of oil and gas properties are accounted for as adjustments of capitalized costs with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil and gas attributable to a cost center, in which case the gain or loss is recognized in income. In determining whether adjustments to capitalized costs result in a significant alteration, capitalized costs within the cost center are allocated between the reserves sold and reserves retained on the same basis used to compute amortization, unless there are substantial economic differences between the properties sold and those retained. When economic differences between properties sold and those retained exist, capitalized costs within the cost center are allocated on the basis of the relative fair values of the properties in determining whether adjustments to capitalized costs result in a significant alteration. For six months ended June 30, 2015, Legend sold two of its properties (McCune and Piqua), resulting in a loss on the sale of $892,131.
Full Cost Ceiling Test	Full Cost Ceiling Test At the end of each quarterly reporting period, the cost of oil and gas properties in each cost center are subject to a “ceiling test” which basically limits capitalized costs to the sum of the estimated future net revenues from proved reserves, discounted at 10% per annum to present value, based on current economic and operating conditions, at the end of the period, plus the cost of properties not being amortized, plus the lower of cost or fair market value of unproved properties included in costs being amortized, less the income tax effects related to book and tax basis differences of the properties. If the cost of oil and gas properties exceeds the ceiling, the excess is reflected as a non-cash impairment charge to earnings. The impairment charge is permanent and not reversible in future periods, even though higher oil and gas prices in the future may subsequently and significantly increase the ceiling amount. There was no impairment charge for the six months ended June 30, 2015. For the six months ended June 30, 2014, the Company recognized impairment on its Canadian oil and gas properties.
Asset Retirement Obligations	Asset Retirement Obligations We record the fair value of a liability for an asset retirement obligation in the period in which the asset is acquired and a corresponding increase in the carrying amount of the related long-lived asset if a reasonable estimate of fair value can be made. The associated asset retirement cost capitalized as part of the related asset is allocated to expense over the asset’s useful life. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized. The asset retirement obligation is recorded at its estimated fair value and accretion is recognized over time as the discounted liability is accreted to its expected settlement value. Fair value is determined by using the expected future cash outflows discounted at our credit-adjusted risk-free interest rate.
Oil and Gas Revenue Recognition	Oil and Gas Revenue Recognition The Company uses the sales method of accounting for its oil and gas revenue recognition. Revenue from production on properties in which the Company shares an economic interest with other owners is recognized on the basis of our interest. Revenues are reported on a gross basis for the amounts received before taking into account production taxes, royalties, and transportation costs, which are reported as production expenses. Under the sales method, revenues are recognized based on the actual volumes of gas and oil sold to purchasers at a fixed or determinable price, when delivery has occurred and title has transferred, and if collectability of the revenue is probable. Delivery occurs and title is transferred when production has been delivered to a purchaser’s pipeline or truck. The volume sold may differ from the volumes we are entitled to, based on our individual interest in the property. The Company utilizes a third-party marketer to sell oil and gas production in the open market. As a result of the requirements necessary to gather information from purchasers or various measurement locations, calculate volumes produced, perform field and wellhead allocations and distribute and disburse funds to various working interest partners and royalty owners, the collection of revenues from oil and gas production may take up to 45 days following the month of production. Therefore, the Company may make accruals for revenues and accounts receivable based on estimates of our share of production. Since the settlement process may take 30 to 60 days following the month of actual production, our financial results may include estimates of production and revenues for the related time period. The Company will record any differences between the actual amounts ultimately received and the original estimates in the period they become finalized. Oil Hauling and Service Revenue Recognition Our wholly-owned subsidiary, Black Diamond recognizes revenue based on the relative transit time of the freight transported and as other services are provided. Accordingly, a portion of the total revenue that will be billed to the customer once a load is delivered is recognized in each reporting period based on the percentage of the freight pickup and delivery service that has been completed at the end of the reporting period. The Company records revenues on the gross basis at amounts charged to its customers because the Company is the primary obligor, a principal in the transaction, it invoices its customers and retains all credit risks, and maintains discretion over pricing. Additionally, the Company is responsible for the selection of third-party transportation providers. Independent contractor providers of revenue equipment are classified as purchased transportation expense on the consolidated statements of operations. Black Diamond also has a service center which performs repairs and maintenance to our fleet of tractors and trailers, as well as repair and maintenance for independent third party operators. Revenue for third party repairs and corresponding cost of repairs is recorded at the time the repairs are completed.
Stock-based compensation	Stock-based Compensation The Company measures compensation cost for stock-based awards at fair value and recognize it as compensation expense over the service period for awards expected to vest. Stock-based compensation expense is also recognized upon cancellation of awards that were initially expected to vest. Compensation cost (a non-cash expense) is recorded as a component of general and administrative expenses in the consolidated statements of operations, net of an estimated forfeiture rate. The Black-Scholes option pricing model is used to estimate the fair value of employee stock option awards at the date of grant, which requires the input of highly subjective assumptions, including expected volatility and expected life. Changes in these inputs and assumptions can materially affect the measure of estimated fair value of our share-based compensation. These assumptions are subjective and generally require significant analysis and judgment to develop. When estimating fair value, some of the assumptions will be based on, or determined from, external data and other assumptions may be derived from our historical experience with stock-based payment arrangements. The appropriate weight to place on historical experience is a matter of judgment, based on relevant facts and circumstances. The Company estimates volatility by considering the historical stock volatility. The Company has opted to use the simplified method for estimating expected term, which is generally equal to the midpoint between the vesting period and the contractual term.
Net Loss Per Common Share	Net Loss Per Common Share The computation of basic net loss per common share is based on the weighted average number of shares that were outstanding during the period, including contingently redeemable common stock. The computation of diluted net loss per common share is based on the weighted average number of shares used in the basic net loss per share calculation plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding. Potentially dilutive common shares include warrants to purchase shares of common stock (0 and 32,413,067 for the six months ended June 30, 2015 and 2014 respectively), and convertible debentures (39,333,333 and 289,628,300 for the six months ended June 30, 2015 and 2014, respectively).
Derivative Financial Instruments	Derivative Financial Instruments The Company evaluates financial instruments for freestanding or embedded derivatives. Derivative instruments that do not qualify for permanent equity classification as the instruments have been determined not to be indexed to the Company’s stock are recorded as liabilities at fair value, with changes in value recognized as other income (expense) in the consolidated statements of operations in the period of change. Derivative liabilities are categorized as either short-term or long-term based upon management’s estimates as to when the derivative instrument may be realized or based upon the holder’s ability to realize the instrument.
Fair Value Measurements	Fair Value Measurements The Company measures fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. We utilize a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable market inputs such as quoted prices in active markets; Level 2: Observable market inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs where there is little or no market data, which require the reporting entity to develop its own assumptions. The carrying amounts of financial assets and liabilities such as cash, accounts receivable and accounts payable approximate their fair values (determined based on level 1 inputs in the fair value hierarchy) due to the short term nature of these instruments.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 amends previous guidance to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company expects that the affected amounts on its balance sheets will be reclassified within the balance sheets to conform to this standard. The Company does not expect that the adoption of this ASU will have a material impact on its financial statements.
Subsequent Events	Subsequent Events The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration.

ACQUISITION OF BLACK DIAMOND (T

ACQUISITION OF BLACK DIAMOND (Tables)	6 Months Ended
	Jun. 30, 2015
Acquisition Of Black Diamond Tables
Purchase price and allocation of the purchase price to the net assets acquired	The following tables summarize the purchase price and allocation of the purchase price to the net assets acquired: Purchase price on April 4, 2015 Cash paid $ 1,500,000 Promissory note 2,854,000 Fair value of common stock issued 861,300 Total purchase price $ 5,215,300 Fair value of net assets at April 4, 2015 Cash $ 435,339 Accounts receivable 1,063,629 Inventory 207,437 Prepaid and other current assets 199,132 Property and equipment 3,855,721 Total assets 5,761,258 Accounts payable (455,632 ) Other current liabilities (90,326 ) Total liabilities (545,958 ) Net assets acquired $ 5,215,300
Schedule of condensed pro forma statements of operations	Below are the condensed pro forma statements of operations for Legend and Black Diamond presented as if the entities were combined for the six-month period ended June 30, 2015. Historical Legend Oil and Gas, Ltd. Historical Black Diamond Energy Combined Revenue $ 240,726 $ 5,140,348 $ 5,381,074 Operating expenses: Cost of service revenue — 2,406,556 2,406,556 Production expenses 283,046 — 283,046 General and administrative expenses 1,628,745 2,236,476 3,865,221 Depletion, depreciation and amortization expense 85,011 466,694 551,705 Accretion of asset retirement obligation 4,785 — 4,785 Impairment of oil and gas properties 452,277 — 452,277 Loss on sale of oil and gas properties 892,131 — 892,131 Total operating expenses 3,345,995 5,109,726 8,455,721 Net income (loss) from operations (3,105,269 ) 30,622 (3,074,647 ) Other income (expense): Interest expense (703,070 ) — (703,070 ) Change in fair value of embedded derivative liabilities (6,551,333 ) — (6,551,333 ) Other Income/Expense 78,537 — 78,537 Total other income (expense) (7,175,866 ) — (7,175,866 ) Net (loss) income $ (10,281,135 ) $ 30,622 $ (10,250,513 ) Shares outstanding 787,583,273 90,817,356 878,400,629 Net income (loss) per common share $ (0.01 ) $ 0.00 $ (0.01 )

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2015
Oil and Gas Property [Abstract]
Schedule of property and equipment	June 30, December 31, Drilling rig $ 465,000 $ 465,000 Trucks, trailers, and vehicles 4,120,693 — Furniture and equipment 208,247 — Property and equipment, at cost 4,793,940 — Accumulated depreciation (235,249 ) (11,625 ) Property and equipment, net $ 4,558,691 $ 453,375

OIL AND GAS PROPERTIES (Tables)

OIL AND GAS PROPERTIES (Tables)	6 Months Ended
	Jun. 30, 2015
Oil and Gas Property [Abstract]
Schedule of capitalized costs	The amount of capitalized costs related to oil and gas properties and the amount of related accumulated depletion, depreciation and amortization are as follows: June 30, 2015 December 31, 2014 Oil and gas properties, subject to amortization $ 1,268,003 $ 3,948,679 Accumulated depletion, depreciation and amortization, (37,957 ) (308,763 ) Net oil and gas properties, subject to amortization 1,230,046 3,639,916 Oil and gas properties, not subject to amortization — — Total oil and gas properties, net $ 1,230,046 $ 3,639,916

ASSET RETIREMENT OBLIGATION (Ta

ASSET RETIREMENT OBLIGATION (Tables)	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Schedule of asset retirement obligations	The following table reconciles the value of the asset retirement obligation for the six months ended June 30, 2015 and 2014: June 30, 2015 June 30, 2014 Opening balance, January 1 $ 202,586 $ 196,767 Additions for purchase of oil and gas properties 85,856 — Accretion expense 4,785 23,223 Change in estimate (2,400 ) 44,657 Reductions for sales of oil and gas properties (182,242 ) — Ending balance, June 30 $ 108,585 $ 264,647

EMBEDDED DERIVATIVE LIABILITI28

EMBEDDED DERIVATIVE LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table is a reconciliation of embedded derivative liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2015 and 2014: June 30, 2015 June 30, 2014 Beginning balance $ 1,128,667 $ 1,161,284 Conversions (7,680,000 ) — Changes in fair value 6,551,333 (496,730 ) Ending balance $ — $ 664,554
Summary of significant unobservable inputs in determining fair value	A summary of quantitative information with respect to valuation methodology, estimated using a Black-Scholes model, and significant unobservable inputs used for the Company’s embedded derivative liabilities for the six months ended June 30, 2014 is as follows: Expected dividend yield — Strike price $ .0001-.001 Expected stock price volatility 112 % Risk-free interest rate 0.13 Expected term (in years) 0.33

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum lease payments	Future minimum lease payments for these non-cancelable operating leases as of June 30, 2015 are as follows: 2015 $ 70,300 2016 120,000 2017 90,000 Thereafter — Total net minimum payments $ 280,300

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Summary segment fiancial information	Below is summarized segment financial data for both Legend and Black Diamond as of and for the three and six months ended June 30, 2015. Summarized Statements of Operations for the Three Months Ended June 30, 2015 Legend Black Diamond Total Revenue $ 70,711 $ 2,325,758 $ 2,396,469 Total operating expenses $ 1,126,215 $ 2,823,402 $ 3,949,617 Operating loss $ (1,055,504 ) $ (497,644 ) $ (1,553,148 ) Total other income (expense) $ (314,555 ) $ (3,299 ) $ (317,854 ) Net loss $ (1,370,059 ) $ (500,943 ) $ (1,871,002 ) Summarized Statements of Operations for the Six Months Ended June 30, 2015 Legend Black Diamond Total Revenue $ 240,726 $ 2,325,758 $ 2,566,484 Total operating expenses $ 3,345,995 $ 2,823,402 $ 6,169,397 Operating loss $ (3,105,269 ) $ (497,644 ) $ (3,602,913 ) Total other income (expense) $ (7,175,866 ) $ (3,299 ) $ (7,179,165 ) Net loss $ (10,281,135 ) $ (500,943 ) $ (10,782,078 ) Summarized Balance Sheets at June 30, 2015 Legend Black Diamond Total Total assets $ 2,708,312 $ 5,694,910 $ 8,403,222 Total liabilities $ 13,469,492 $ 1,096,716 $ 14,566,208

ORGANIZATION AND DESCRIPTION 31

ORGANIZATION AND DESCRIPTION OF OPERATIONS (Details Narrative) - May. 01, 2015 - shares	Total
Organization And Description Of Operations Details Narrative
Restriction on preferred stockholder from ownership (percent) in common stock	19.99%
Converted common stock	600,000,000
Number of perferred stock shares converted	600
Common stock ownership by one shareholder after conversion	63.00%

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Warrants [Member]
Potentially dilutive securities not included in the computation of loss per share	0	32,413,067
Convertible notes payable [Member]
Potentially dilutive securities not included in the computation of loss per share	39,333,333	289,628,300

GOING CONCERN (Details Narrativ

GOING CONCERN (Details Narrative)	6 Months Ended
	Jun. 30, 2015USD ($)
Going Concern Details Narrative
Working capital deficit	$ (11,800,000)

ACQUISITION OF BLACK DIAMOND (D

ACQUISITION OF BLACK DIAMOND (Details Narrative) - Apr. 03, 2015 - USD ($)	Total	Total
Valentin Member
Shares issued to aquire interest in enity, shares	90,817,356
Shares issued to acquire interest in enity, value	$ 526,741	$ 526,741
Wallace Member
Shares issued to aquire interest in enity, shares	576,682,644
Shares issued to acquire interest in enity, value	$ 334,559	334,559
Sher Member
Cash advance to acquire business		$ 125,000
Interest rate	5.00%	5.00%

ACQUISITION OF BLACK DIAMOND 35

ACQUISITION OF BLACK DIAMOND (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating expenses:
Cost of service revenue	$ 1,123,545		$ 1,123,545
Production expenses	77,879	$ 31,404	283,046	$ 189,510
General and administrative	2,480,937	818,100	3,138,192	1,329,959
Depletion, depreciation, and amortization	219,137	49,850	275,421	208,012
Accretion of asset retirement obligation	2,400	8,549	4,785	$ 23,223
Impairment of oil and gas properties	45,719		452,277
Loss on sales of oil and gas properties			892,131
Total operating expenses	3,949,617	907,903	6,169,397	$ 1,750,704
Other income (expense)
Interest expense	$ (393,553)	(887,853)	(703,531)	(1,339,238)
Change in fair value of embedded derivative liabilities		1,179,328	(6,551,333)	1,392,496
Other income	$ 75,699		75,699
Total other income (expense)	$ (317,854)	$ 291,475	(7,179,165)	$ 53,258
Combined [Member]
Revenue			5,381,074
Operating expenses:
Cost of service revenue			2,406,556
Production expenses			283,046
General and administrative			3,865,221
Depletion, depreciation, and amortization			551,705
Accretion of asset retirement obligation			4,785
Impairment of oil and gas properties			452,277
Loss on sales of oil and gas properties			892,131
Total operating expenses			8,455,721
Net income (loss) from operations			(3,074,647)
Other income (expense)
Interest expense			(703,070)
Change in fair value of embedded derivative liabilities			(6,551,333)
Other income			78,537
Total other income (expense)			(7,175,866)
Net (loss) income			$ (10,250,513)
Shares outstanding			878,400,629
Net income (loss) per common share			$ (.01)
Black Diamond Energy [Member]
Revenue			$ 5,140,348
Operating expenses:
Cost of service revenue			$ 2,406,556
Production expenses
General and administrative			$ 2,236,476
Depletion, depreciation, and amortization			$ 466,694
Accretion of asset retirement obligation
Impairment of oil and gas properties
Loss on sales of oil and gas properties
Total operating expenses			$ 5,109,726
Net income (loss) from operations			$ 30,622
Other income (expense)
Interest expense
Change in fair value of embedded derivative liabilities
Other income
Total other income (expense)
Net (loss) income			$ 30,622
Shares outstanding			90,817,356
Net income (loss) per common share			$ 0
Legend Oil and Gas, Ltd. [Member]
Revenue			$ 240,726
Operating expenses:
Cost of service revenue
Production expenses			$ 283,046
General and administrative			1,628,745
Depletion, depreciation, and amortization			85,011
Accretion of asset retirement obligation			4,785
Impairment of oil and gas properties			452,277
Loss on sales of oil and gas properties			892,131
Total operating expenses			3,345,995
Net income (loss) from operations			(3,105,269)
Other income (expense)
Interest expense			(703,070)
Change in fair value of embedded derivative liabilities			(6,551,333)
Other income			78,537
Total other income (expense)			(7,175,866)
Net (loss) income			$ (10,281,135)
Shares outstanding			787,583,273
Net income (loss) per common share			$ (0.01)

ACQUISITION OF BLACK DIAMOND 36

ACQUISITION OF BLACK DIAMOND (Details) - USD ($)	Apr. 04, 2015	Jun. 30, 2015	Jun. 30, 2014
Business Combinations [Abstract]
Cash paid	$ 1,500,000	$ 1,064,661
Promissory note	2,854,000
Fair value of common stock issued	861,300
Total purchase price	5,215,300
Cash	435,339
Accounts receivable	1,063,629
Inventory	207,437
Prepaid and other current assets	199,132
Property and equipment	3,855,721
Total assets	5,761,258
Accounts payable	(455,632)
Other current liabilities	(90,326)
Total liabilities	(545,958)
Net assets acquired	$ 5,215,300

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - 6 months ended Jun. 30, 2015 - USD ($)	Total
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 223,624
Property, Plant, and Equipment - UsefulLife	5 years

PROPERTY AND EQUIPMENT (Detai38

PROPERTY AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Property and equipment, gross	$ 4,793,940	$ 465,000
Accumulated depreciation	(235,249)	(11,625)
Property and equipment, net	4,558,691	453,375
Drilling Rig [Member]
Property and equipment, gross	465,000	$ 465,000
Trucks, Trailers and Vehicles [Member]
Property and equipment, gross	4,120,693
Furniture and Equipment [Member]
Property and equipment, gross	$ 208,247

OIL AND GAS PROPERTIES (Details

OIL AND GAS PROPERTIES (Details Narrative) - USD ($)	Jan. 28, 2014	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014
Proceeds from sale of oil and gas property and equipment			$ 1,665,000
Impairment Loss		$ 45,719	452,277
Depletion expense			51,797
Landers and Volunteer Property [Member]
Development costs			245,444
British Columbia, Canada - Inga [Member]
Proceeds from sale of oil and gas property and equipment	$ 450,316
British Columbia, Canada - Inga [Member] | CAD [Member]
Proceeds from sale of oil and gas property and equipment	$ 435,000
Van Pelt Lease
Development costs			402,277
Working Interest		$ 100,000	100,000
Impairment Loss			452,277
Piqua Property
Proceeds from sale of oil and gas property and equipment			1,500,000
McCune Property
Proceeds from sale of oil and gas property and equipment			$ 165,000

OIL AND GAS PROPERTIES (Detai40

OIL AND GAS PROPERTIES (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Oil and Gas Property [Abstract]
Oil and gas properties, subject to amortization	$ 1,268,003	$ 3,948,679
Accumulated depletion, depreciation, and amortization	(37,957)	(308,763)
Net oil and gas properties, subject to amortization	$ 1,230,046	$ 3,639,916
Oil and gas properties, not subject to amortization
Total oil and gas properties, net	$ 1,230,046	$ 3,639,916

ASSET RETIREMENT OBLIGATION (De

ASSET RETIREMENT OBLIGATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Asset Retirement Obligation
Opening balance			$ 202,586	$ 196,767
Additions for purchase of oil and gas properties			85,856
Accretion expense	$ 2,400	$ 8,549	4,785	$ 23,223
Change in estimate			(2,327)	$ 44,657
Reductions for sales of oil and gas properties			(182,242)
Ending balance	$ 108,585	$ 264,647	$ 108,585	$ 264,647

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - Jun. 30, 2015 - USD ($)	Total
Related Party Transactions Details Narrative
Due to related party	$ 451,600
Repayment related party	180,400
Brokerage fees	$ 225,000

NOTE PAYABLE TO BANK (Details N

NOTE PAYABLE TO BANK (Details Narrative) - Legend Canada [Member]	1 Months Ended
	Aug. 31, 2014CAD	Oct. 19, 2011USD ($)	Oct. 19, 2011CAD	Aug. 15, 2011USD ($)
Notice of Intention to Enforce Security (National Bank of Canada) [Member] | Fixed and Floating Charge Demand Debenture [Member]
Default amount		$ 33,000,000
Notice of Intention to Enforce Security (National Bank of Canada) [Member] | Fixed and Floating Charge Demand Debenture [Member] | CAD [Member]
Default amount | CAD			CAD 25,000,000
Notice of Intention to Enforce Security (National Bank of Canada) [Member] | Revolving Credit Facility [Member]
Default amount				$ 8,350,000
Notice of Intention to Enforce Security (National Bank of Canada) [Member] | Revolving Credit Facility [Member] | CAD [Member]
Default amount				$ 6,000,000
Mutual Release and Discharge (National Bank of Canada) [Member] | CAD [Member]
Amount paid for release of guaranty | CAD	CAD 250,000

NOTE PAYABLE (Details Narrative

NOTE PAYABLE (Details Narrative) - USD ($)	Apr. 02, 2015	Jan. 21, 2015	Jan. 06, 2015	Apr. 02, 2014	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Debt Discount						$ 181,067	$ 749,994
NWTR - Lander and Volunteer leases [Member]
Notes payabe					$ 26,664	$ 26,664		$ 65,000
Description of debt maturity						The Company was obligated to repay the $75,000 within 60 days of such termination, or on February 28, 2015, whichever came first. There was no interest due and payable on this note.
Repayments of bank debt			$ 10,000					10,000
Periodic payment			$ 9,168
Decription of ferquency payment			In five (5) monthly installments
Total payments made						$ 38,336
Proceeds from debt net of issuance costs				$ 75,000
RIG PURCHASE AGREEMENT [Member]
Notes payable face amount					315,000	315,000
Notes payabe					230,317	230,317
Periodic payment						$ 18,343
Decription of ferquency payment						Monthly
Purchase price						$ 465,000
Property down payment					$ 150,000	$ 150,000
Interest rate					6.00%	6.00%
Notes payable balloon payment					$ 178,485	$ 178,485
Total payments made						52,000	$ 3,000
Debt instrument total principal payments					$ 55,000
Community Trust Bank Loan [Member]
Notes payable face amount								85,100
Notes payabe								$ 78,385
Periodic payment						$ 1,508
Decription of ferquency payment						Monthly
Interest rate								2.40%
Notes payable balloon payment								$ 70,400
Description of collateral						This note is secured by a certificate of deposit
Restricted cash								$ 85,000
Total payments made						$ 7,000
Debt instrument total principal payments						$ 3,000
Hillair Capital Investments LP Note [Member]
Notes payabe	$ 2,499,975	$ 400,000
Interest rate	8.00%	8.50%
Debt instrument total principal payments	$ 549,975
Proceeds from debt net of issuance costs		$ 360,000
Debt Discount	119,385	15,802
Transaction Fees	$ 549,975	$ 40,000

CONVERTIBLE DEBT (Details Narra

CONVERTIBLE DEBT (Details Narrative)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)N	Jun. 30, 2014USD ($)shares	Dec. 31, 2013USD ($)N$ / shares	Dec. 31, 2014USD ($)	Mar. 31, 2014USD ($)
Debt Instrument, Unamortized Discount	$ 0		$ 0			$ 53,924
Interest expense	(393,553)	$ (887,853)	$ (703,531)	$ (1,339,238)
Convertible Debt [Member]
Proceeds from Short-term Debt				26,500	$ 125,000
Debt Instrument, Face Amount					$ 300,000		$ 30,000
Debt Instrument, Maturity Date					Apr. 30, 2014
Debt Instrument, Interest Rate, Stated Percentage					10.00%
Debt Instrument, Payment Terms					No interest accrues on the note principal if borrowings are repaid within 90 days from the date advanced. If repaid within 90 days, a one-time interest charge of 12% accrues.
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum					12.00%
Debt Instrument, Convertible, Terms of Conversion Feature					The conversion price of the note is the lesser of $0.05 or 60% of the lowest trade price of the Company's common stock for 25 days prior to the conversion.
Debt Instrument, Convertible, Number of Equity Instruments | N			20,755,608		5,339,558
Debt Instrument, Convertible, Beneficial Conversion Feature					$ 124,430
Debt Instrument, Unamortized Discount (Premium), Net					$ 136,930
Debt Conversion, Converted Instrument, Amount			$ 100,000	$ 55,004
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | shares				2,772,407
Short-term Debt, Maximum Amount Outstanding During Period				$ 82,500
Debt Instrument, Unamortized Discount	157,031		157,031			$ 0
Repayments of short term debt			12,500
Interest expense			2,475
Conversion Price | $ / shares					$ .05
Accrued Interest	$ 7,520		$ 7,520

CONVERTIBLE DEBT (Details Nar46

CONVERTIBLE DEBT (Details Narrative 1) - USD ($)	Apr. 01, 2016	Jun. 30, 2015	Apr. 28, 2015	Jan. 21, 2015	Nov. 13, 2014	Mar. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2015	Dec. 30, 2015	Dec. 31, 2014	Dec. 31, 2013	Jul. 31, 2013
Proceeds from Convertible Debt							$ 2,310,000	$ 735,758
Accrued interest payable		$ 109,674					$ 109,674				$ 50,427
Common stock, par value		$ 0.001					$ 0.001				$ 0.001
Debenture		$ 15,470					$ 15,470				$ 6,119,245
Debt Discount							$ 181,067	$ 749,994
Hillair Convertible Notes Payable (Restructured Debenture) [Member]
Proceeds from Convertible Debt					$ 600,000
Debt Instrument, Interest Rate, Stated Percentage					8.50%
Debt Instrument, Face Amount					$ 6,060,000
Class of Warrant or Rights, Called (in Shares)					474,258,441
Debt issuance costs					$ 60,000
Debenture													$ 6,000,000
Hillair Convertible Notes Payable (Restructured Debenture) [Member] | Series A Convertible Preferred Stock [Member]
Class of Warrant or Rights, Called (in Shares)					600
Convertible Debt, Fair Value Disclosures											$ 2,324,184
Common stock, par value					$ 0.001
Preferred stock, par value					$ 1,000
Hillair Original Issue Discount Senior Secured Convertible Notes Payable [Member]
Proceeds from sale of properties						$ 1,425,000
Proceeds from Convertible Debt		$ 300,000	$ 700,000						$ 5,346,571
Debt Instrument, Interest Rate, Stated Percentage		8.00%	8.00%				8.00%
Debt Instrument, Face Amount		$ 340,000	$ 840,000				$ 340,000
Debt Instrument, Unamortized Discount (Premium), Net										$ 22,911
Debt issuance costs			$ 140,000
Repayments of short term debt	$ 778,400								713,429
Deposit										$ 568,885
Prepayment Penalty									$ 142,686
Convertible amount of shares		13,333,333	28,000,000
Conversion price			$ .03							$ 0.03
Debt Discount			$ 22,969
Hillair Convertible Notes Payable [Member]
Debt Instrument, Unamortized Discount (Premium), Net												$ 1,372,742
Hillair Convertible Notes Payable [Member]
Debt Instrument, Interest Rate, Stated Percentage				8.50%
Debt Instrument, Face Amount				$ 360,000
Debenture				400,000
Legal fees				$ 40,000

EMBEDDED DERIVATIVE LIABILITI47

EMBEDDED DERIVATIVE LIABILITIES (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Begining balance	$ 1,128,667	$ 1,161,284
Conversions	(7,680,000)
Changes in fair value	6,551,333	(213,168)
Ending balance	$ 0	$ 664,554

EMBEDDED DERIVATIVE LIABILITI48

EMBEDDED DERIVATIVE LIABILITIES (Details 1) - Jun. 30, 2015 - $ / shares	Total
Expected stock price volatility	112.00%
Risk free interest rate	13.00%
Expected term (in years)	3 months 29 days
Embedded derivative liabilities, valuation tecnique	Black-Scholes model
Minimum [Member]
Strike price	$ .0001
Maximum [Member]
Strike price	$ .001

STOCKHOLDERS_ EQUITY (DEFICIT)

STOCKHOLDERS’ EQUITY (DEFICIT) (Details Narrative) - USD ($)	Apr. 03, 2015	Mar. 31, 2014	Jan. 30, 2014	Dec. 31, 2014	May. 31, 2015
Stock issued for services, shares			54,246,508
Stock issued for services, value			$ 799,100
Convertible preferred stock, issued				600
Convertible preferred stock, outstanding				600
Convertible preferred stock dividend rate				0.00%
Number of shares upon conversion				600,000,000
Convertible conversion price				$ .0001
Valentin Member
Fair value of stock issued in acquisition	$ 435,924
Hillair Convertible Notes Payable [Member]
Stock issued for accrued interest, shares		1,220,798
Stock issued for accrued interest, value		$ 51,746
Stock Incentive Plan 2014
Number of authorized shares (in shares)					40,000,000

COMMITMENTS AND CONTINGENCIES50

COMMITMENTS AND CONTINGENCIES (Details Narrative) - Jun. 30, 2015 - USD ($)	Total
Property taxes, penalties & interest, owed	$ 10,766
Property taxes, penalties & interest monthly payment	500
RR Donnelly & Sons [Member]
Amount sought in litigation	68,913
Settlement - interest	3,000
Settlement - monthly amount payable	2,500
Payments of litigation settlement	15,000
Litigation settlement payable	42,000
Cairncross & Heppleman [Member]
Amount sought in litigation	35,787
Settlement - interest	1,000
Settlement - monthly amount payable	2,000
Payments of litigation settlement	12,000
Litigation settlement payable	11,000
Office Lease [Member]
Monthly rental payments due	$ 2,200

COMMITMENTS AND CONTINGENCIES51

COMMITMENTS AND CONTINGENCIES (Details)	Jun. 30, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,015	$ 70,300
2,016	120,000
2,017	90,000
Net minimum lease payments	$ 280,300

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Total revenue	$ 2,396,469	$ 112,936	$ 2,566,484	$ 406,407
Total operating expenses	3,949,617	907,903	6,169,397	1,750,704
Operating loss	(1,553,148)	(794,967)	(3,602,913)	(1,344,297)
Total other income (expense)	(317,854)	291,475	(7,179,165)	53,258
Net loss	(1,871,002)	$ (932,942)	(10,782,078)	$ (1,720,489)
Total assets	8,403,222		8,403,222		$ 4,952,545
Total liabilities	14,566,208		14,566,208		$ 8,540,194
Legend [Member]
Total revenue	70,711		240,726
Total operating expenses	1,126,215		3,345,995
Operating loss	(1,055,504)		(3,105,269)
Total other income (expense)	(314,555)		(7,175,866)
Net loss	(1,370,059)		(10,281,135)
Total assets	2,708,312		2,708,312
Total liabilities	13,469,492		13,469,492
Black Diamond [Member]
Total revenue	2,325,758		2,325,758
Total operating expenses	2,823,402		2,823,402
Operating loss	(497,644)		(497,644)
Total other income (expense)	(3,299)		(3,299)
Net loss	(500,943)		(500,943)
Total assets	5,694,910		5,694,910
Total liabilities	$ 1,096,716		$ 1,096,716

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	Aug. 15, 2015USD ($)N	Jul. 16, 2015USD ($)$ / sharesshares	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
Proceeds from Convertible Debt			$ 2,310,000	$ 735,758
Subsequent Event [Member]
Number of installment payments | N	7
Settlement - monthly amount payable	$ 15,000
Term of employment	12 months
Name of parties to complaint	Marshall Diamond-Goldberg, our former President, Chief Operating Officer and Director
Settlement amount	$ 105,000
Subsequent Event [Member] | Hillair Original Issue Discount Senior Secured Convertible Notes Payable [Member]
Debt Instrument, Face Amount		$ 340,000
Convertible amount of shares | shares		11,333,333
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Conversion Price | $ / shares		$ .03
Debt issuance costs		$ 40,000
Proceeds from Convertible Debt		$ 300,000