Legend O&G to Acquire ISR's Canadian Interests

Legend O&G has signed a non-binding letter of intent (LOI) with International Sovereign of Calgary, Alberta, Canada, to acquire all of ISR's interests in land and production in Canada for a purchase price valued at $17.0 million in a cash and shares transaction. The acquired properties are producing a minimum of 300 barrels of oil equivalent per day (gas converted at 6:1), with approximately 30% of the production being crude oil. Proven and probable reserves associated with the assets are approximately 1.0 million barrels of oil equivalent (BOE). Annualized cash flow is anticipated to be over $3.0 million.

"This acquisition will add significant production and cash flow to Legend's portfolio of assets which will help underpin the Company's resource activity in its new Canadian core area, as well as allowing the Company to expand its activities on our American asset base," said Legend's President, Marshall Diamond-Goldberg. The assets are a mix of operated and non-operated oil and gas production properties as well as a large number of undeveloped leases on which a number of drilling opportunities have been identified. "We have yet to assess all of the undeveloped land; however there appear to be several potential opportunities to expand the light oil production utilizing horizontal wells with multi-stage fracturing technology. The ISR assets have been moderately developed in the past two years, and we anticipate increasing production on the properties with a robust capital expenditure program over the next eighteen months," Diamond-Goldberg added.

The two companies will move toward a definitive agreement and will commence due diligence immediately. ISR shareholder approval is required with an anticipated Closing date of August 31st. The effective date of this acquisition will be July 1st.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Business Development Director - Midstream Services
Expertise: Business Development|Operations Management
Location: Houston, TX
 
Project Manager, Oil and Gas
Expertise: Budget / Cost Control|Planner / Scheduler|Project Management
Location: Harvey, LA
 
Case Specialist II Job
Expertise: Business Analyst|Legal|Regulatory Compliance
Location: Denver, CO
 
search for more jobs

Brent Crude Oil : $55.45/BBL 0.99%
Light Crude Oil : $52.37/BBL 1.20%
Natural Gas : $3.42/MMBtu 0.88%
Updated in last 24 hours