Legacy Expands Acreage Position in the Permian Basin
Legacy Reserves has signed a definitive purchase agreement to acquire certain oil and natural gas producing properties from a private seller for a purchase price of $15.3 million, subject to purchase price adjustments, to be paid in cash. The properties are located in the Permian Basin near Legacy's existing operations. The acquisition is subject to customary closing conditions and is expected to close by early October 2007.
-- Estimated proved reserves of approximately 783 MBoe
-- 100% proved developed producing reserves
-- Proved reserves to production ratio of approximately 14 years
-- Current net production of approximately 159 Boe per day
-- 93 producing wells, all of which are operated
Legacy Reserves also announced that it has acquired oil and natural gas producing properties from private parties for an aggregate purchase price of $6.1 million, to be paid in cash. The properties are located in the Permian Basin near Legacy's existing operations.
-- Estimated proved reserves of approximately 573 MBoe
-- 81% proved developed producing reserves
-- Proved reserves to production ratio of approximately 18 years
-- Current net production of approximately 90 Boe per day
-- 31 producing wells
We expect 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.
Legacy Reserves LP is an independent oil and natural gas limited partnership headquartered in Midland, Texas, and are 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)