MIDLAND, Texas, March 26, 2014 (GLOBE NEWSWIRE) -- Legacy Reserves LP ("Legacy") (Nasdaq:LGCY) today announced it has entered into separate agreements to purchase oil-weighted properties in Chaves County, New Mexico and Sheridan County, Montana for a combined $112 million. These properties produce approximately 890 Boe per day, contain estimated proved reserves of approximately 9.0 MMBoe, are approximately 95% oil, and are over 95% operated. The closings of these transactions are expected to occur in the second quarter, and the purchase prices remain subject to customary adjustments. Legacy anticipates funding these transactions with borrowings under its revolver.
Cary Brown, Legacy's Chairman and Chief Executive Officer, commented on the purchases. "We are pleased with our signing of these two acquisitions. Just a few weeks ago in our earnings release we stated our objective of providing unitholders with a stable and growing distribution by pursuing projects focused on long-term success. These two acquisitions align with that ambition and move us closer to our 2014 and long-term objectives. The Caprock field in New Mexico is an active CO2 flood project which has shown a strong response and has significant potential for increased response from ongoing CO2 investment under a long-term source agreement with Kinder Morgan. The inclining production profile should fit nicely in our portfolio and we look forward to leveraging the strength of our people including our EOR-focused team in The Woodlands, Texas.
"The high volume, low-decline oil wells in Montana also match us well. Given their close proximity to our existing properties and the attractive low-risk development opportunities afforded, our Rockies group based in Cody, WY is eager to take on this project. We look forward to making the most of these two acquisitions and driving immediate and long-term accretion for our unitholders."
About Legacy Reserves LP
Legacy Reserves LP is a master 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.
Cautionary Statement Relevant to Forward-Looking Information
This press release contains forward-looking statements relating to the pending acquisition 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.