Legacy Reserves to Acquire Producing Properties for $45M
Legacy Reserves LP has signed a definitive purchase agreement to acquire certain oil and natural gas producing properties from Nielson & Associates, Inc. for an aggregate purchase price of $45 million, subject to purchase price adjustments, to be paid $30 million in cash with the remainder to be paid with the issuance of 611,247 Legacy units at closing. The properties are located in the East Binger (Marchand) Unit in Caddo County, Oklahoma. The acquisition is subject to customary closing conditions and is expected to close in mid-April.
Cary Brown, Chairman and Chief Executive Officer of the general partner of Legacy Reserves LP, said, "The East Binger Unit is an excellent fit with our existing asset portfolio and the experience and skill set of our management team. The East Binger acquisition scales up our position in Oklahoma where members of our management team have previously operated. These assets are also consistent with our target acquisition profile of long-lived, stable producing properties with low-risk exploitation opportunities.''
--Estimated proved reserves of 4.1 MMBoe --Miscible nitrogen injection project --Reserve life index of approximately 15.7 years --Current net production of approximately 734 Boe per day --Over 50 producing wells and 30 gas injection wells --13,000 gross acres within the unit boundary --Operated through joint venture company to be 50% owned by Legacy
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 general partner of Legacy Reserves LP.
Concurrently with the closing of the acquisition, Legacy will enter into a registration rights agreement with Nielson & Associates, Inc. granting Nielson & Associates, Inc. and their permitted transferees certain rights to have the units to be acquired at the close of this acquisition included in registration statements that may be filed in the future or at their request.
Legacy Reserves LP is an independent oil and natural gas limited partnership headquartered in Midland, Texas, that focuses 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)
Company: Nielson & Associates, Inc. more info
- Legacy Reserves to Acquire Producing Properties for $45M (Mar 21)