MIDLAND, Texas, April 30, 2012 (GLOBE NEWSWIRE) -- Legacy Reserves LP ("Legacy") (Nasdaq:LGCY) today announced it has entered into an agreement to purchase oil properties in North Dakota and Montana for $70.8 million in cash. These properties have current net production of approximately 776 barrels of oil equivalent ("Boe") per day. Legacy estimates that these properties contain 3.2 MMBoe of proved reserves, of which 95% are oil, 2% are natural gas liquids and 3% are natural gas. In addition, 100% of these reserves are considered proved developed producing ("PDP") and 95% are operated. The North Dakota properties contain approximately 75% of the proved reserves, are primarily located in Billings County as well as Golden Valley and McKenzie Counties, and produce mainly from the Madison, Bakken and Birdbear formations. The Montana properties are located primarily in Blaine County and produce mainly from the Sawtooth and Bowes formations. The closing of this acquisition is anticipated to occur on or about May 23, 2012, and is subject to customary purchase price adjustments and closing conditions. Legacy plans to finance this acquisition with borrowings under its existing credit facility.
Cary Brown, Chairman, President and CEO of Legacy, commented, "We are excited about expanding our Rockies footprint into North Dakota and Montana, which will be managed by our team of professionals in our Cody, Wyoming office. This acquisition of long-lived oil properties in basins with multiple producing horizons is consistent with our acquisition strategy, and we expect this acquisition to be immediately and long-term accretive to our distributable cash flow per unit."
Additional Acquisitions
Legacy announced that it has closed three additional acquisitions of oil and natural gas properties totaling approximately $17.3 million from January through April 2012. These additional properties produce an estimated net 157 Boe per day. Legacy estimates that these properties contain approximately 957 MBoe of proved reserves, of which 86% are oil, 96% are PDP, 74% are in Wyoming and 26% are in the Permian Basin. Coupled with its pending North Dakota and Montana acquisition, these acquisitions will bring Legacy's year-to-date acquisitions of producing properties to a total of approximately $88 million.
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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Cautionary Statement Relevant to Forward-Looking Information
This press release contains forward-looking statements relating to our operations that are based on management's current expectations, estimates and projections about its operations. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "schedules," "estimated," and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: realized oil and natural gas prices; production volumes, lease operating expenses, general and administrative costs and finding and development costs; future operating results and the factors set forth under the heading "Risk Factors" in our annual and quarterly reports filed with the SEC. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Legacy undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.