Legacy Reserves to Acquire Producing Texas, New Mexico Properties
Legacy Reserves LP has signed definitive purchase agreements to acquire certain oil and natural gas-producing properties from two private companies for an aggregate purchase price of $20.8 million, subject to purchase price adjustments, to be paid in cash. The properties are located in Midland, Upton and Reagan counties of West Texas and Lea and Eddy counties of southeast New Mexico. The acquisitions are subject to customary closing conditions and are expected to close by the end of April.
Cary Brown, Chairman and Chief Executive Officer of the general partner of Legacy Reserves LP, said, "The subject properties are near our existing Permian Basin properties and offer identified exploitation opportunities.''
--Estimated proved reserves of 1.44 MMBoe --Approximately 77% proved developed producing reserves --Proved reserves to production ratio of approximately 14 years --Current net production of approximately 284 Boe per day --34 operated and 24 non-operated producing wells
Legacy expects the acquisition to be immediately accretive to distributable cash flow per unit. Management will evaluate the impact of the acquisition on current distribution levels as it integrates the assets. All changes in distributions are subject to approval by the Board of Directors of the company's general partner.
Legacy Reserves LP is an independent oil and natural gas limited partnership headquartered in Midland, Texas, and focused on the acquisition and exploitation of oil and natural gas properties primarily located in the Permian Basin of West Texas and southeast New Mexico.
- Legacy Reserves Finalizes Acquisition in Permian Basin (Nov 15)
- Legacy Reserves Increases Borrowing Base to $410MM (Apr 01)
- Brigham to Divest West Texas Assets (Mar 29)