MIDLAND, Texas, Dec. 27, 2010 (GLOBE NEWSWIRE) -- Legacy Reserves LP ("Legacy") (Nasdaq:LGCY) announced that on December 22, 2010, it closed the previously announced acquisition of Permian Basin oil and natural gas properties from Concho Resources Inc. The purchase price after closing adjustments was $103.3 million, which is subject to customary post-closing adjustments. The properties produce an estimated 1,419 barrels of oil equivalent ("Boe") per day, of which 47% is oil. Proved reserves are estimated to be 5.8 MMBoe, 88% of which are considered proved developed producing ("PDP"). In the aggregate, the natural gas being acquired sells at a premium to Henry Hub natural gas prices due to its natural gas liquids content, giving Legacy exposure to NGL prices. Approximately 60% of the properties are operated, and over 95% of the properties are near Legacy's existing operations in multiple counties throughout the Permian Basin. Legacy financed the acquisition with net proceeds of $83.8 million from its equity offering which closed on November 23, 2010, with the balance funded from its existing credit facility and available cash.
Additionally, Legacy closed on December 22, 2010, an acquisition of a Permian Basin property for $1.4 million cash. The Lea County, New Mexico oil well produces approximately 17 Boepd, 86% of which is oil. Proved developed producing reserves are estimated to be 54,000 barrels of oil equivalent. The acquisition was funded with available cash.
In November, 2010, Legacy closed the acquisition of Powder River Basin oil properties for $6.6 million cash, subject to post-closing adjustments. Legacy acquired additional interests in a field it operates along with the operations and ownership of the adjacent oil field, both located in Wyoming. Net production is 82 Bopd with proved developed producing reserves of 300,000 barrels of oil. The acquisition was funded with its existing credit facility.
Steven H. Pruett, President and Chief Financial Officer commented, "We continue to be active in the acquisition arena, adding to positions in areas where we currently operate. This has enabled us to increase our production volumes and cash flow, and realize operating synergies in the process. We have also been active in drilling our Wolfberry locations near Midland, Texas, with overall results meeting or exceeding our expectations."
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 .
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Statements contained in this press release may be forward-looking statements as defined under federal law. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside the control of Legacy Reserves LP, and a variety of risks that could cause results to differ materially from those expected by the management of Legacy Reserves LP. Legacy Reserves LP undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
CONTACT: Legacy Reserves LP Steven H. Pruett, President and Chief Financial Officer 432-689-5200