Legend Natural Gas IV Picks Up O&G Properties for Approx. $1B

Legend Natural Gas IV has signed two definitive purchase agreements to acquire oil and gas producing properties for a total combined price of approximately $1 billion subject to customary closing conditions and purchase price adjustments. One acquisition marks Legend's entry into the horizontal Barnett Shale resource play in the Fort Worth Basin of Texas while the other consists of conventional Vicksburg production which complements Legend's long standing position in South Texas. A significant number of recompletion and drilling opportunities exist on both new property bases. Legend will be the operator of the newly acquired properties.

Legend will acquire the Barnett properties from a subsidiary of Range Resources Corporation for $900 million, subject to closing conditions and adjustments. The properties include 390 producing wells and approximately 52,000 net acres. Current daily net production from the properties is 113 Mmcfe per day (86% gas). The sale is expected to close in late April with an effective date of February 1, 2011.

In addition, Legend will acquire a majority interest in the Samano and Santa Fe Vicksburg fields from Smith Production Inc. for $99.2 million subject to closing conditions and adjustments. The fields are in Starr and Hidalgo Counties, Texas, located 20 miles from Legend's West La Grulla Field. The properties include 83 operated wells which are producing 8.8 Mmcfe per day net (65% gas) and approximately 7,200 net acres. Closing of the sale is expected in late March with an effective date of January 1, 2011.

Equity for the Partnerships is being provided by the Riverstone/Carlyle Global Energy and Power Funds, a group of energy-focused private equity funds managed by Riverstone Holdings LLC.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Manager, USA
Expertise: Project Management
Location: United States
Financial Analyst - Finance and Investor Relations
Expertise: Accounting|Financial Analyst|Legal
Location: Dallas, TX
Regional Project Controls Supervisor Job
Expertise: Project Controls|Project Management
Location: Amarillo, TX
search for more jobs

Brent Crude Oil : $50.75/BBL 0.09%
Light Crude Oil : $47.73/BBL 0.50%
Natural Gas : $3.05/MMBtu 0.97%
Updated in last 24 hours