MIDLAND, Texas, Nov. 1, 2011 (GLOBE NEWSWIRE) -- Legacy Reserves LP ("Legacy") (Nasdaq:LGCY) today announced it has entered into two agreements to purchase oil and natural gas properties in the Permian Basin and Wyoming for a combined purchase price of approximately $72.5 million.
The first of these acquisitions involves an agreement to purchase Permian Basin properties from a private seller for $20 million in cash and 278,396 Legacy units. The properties are located in Lea, Eddy and Chaves Counties, New Mexico, have net daily production of approximately 1.26 MMcf of natural gas and 110 barrels of oil, and are 100% operated. Legacy estimates that the properties contain proved reserves of approximately 1.64 MMBoe, of which 88% are estimated to be proved developed producing ("PDP"). The closing of this acquisition is anticipated to occur on or about November 14, 2011, and is subject to customary purchase price adjustments.
In addition, Legacy has entered an agreement to purchase natural gas properties for $45 million in cash. These properties, which are located in Freemont County, Wyoming, have net daily production of approximately 12.9 MMcf of natural gas and 15 barrels of oil, and are 100% operated. Legacy estimates that the properties contain proved reserves of approximately 41.6 Bcfe, of which 100% are estimated to be PDP. There are also multiple locations included in this acquisition that will be evaluated for future drilling. The acquisition includes a natural gas gathering system, gas processing plant, and related compression facilities gathering gas from the wells to be acquired. The closing of this acquisition is anticipated to occur on or about December 1, 2011, and is subject to customary purchase price adjustments.
Upon the closing of the Permian Basin acquisition described above, Legacy's borrowing base under its revolving credit facility will expand from $535 million to $550 million. Legacy currently plans to finance these acquisitions with its revolving credit facility, and may seek an interim redetermination of its borrowing base prior to its next scheduled redetermination in April 2012 to reflect the Wyoming acquisition described above as well as future acquisitions.
About Legacy Reserves LP
Legacy Reserves LP is an independent oil and natural gas limited partnership headquartered in Midland, Texas, focused on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin, Mid-Continent and Rocky Mountain regions of the United States. Additional information is available at www.LegacyLP.com.
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