MIDLAND, Texas, April 24, 2008 (PRIME NEWSWIRE) -- Legacy Reserves LP (Nasdaq:LGCY) today announced an increase, effective immediately, of the borrowing base available under its credit facility from a group of banks led by BNP PARIBAS to $272 million from the previous $225 million. The borrowing base will be increased further to $320 million coincident with the acquisition of Permian Basin and Mid-continent oil and natural gas producing properties, which is scheduled to close on April 30, 2008, and the satisfaction of certain customary conditions under the credit facility. The purchase price for the acquisition will consist of $55 million in cash, before closing adjustments, and 1,345,291 newly issued units representing limited partner interests in Legacy Reserves LP. Subsequent to the closing of the acquisition and the further increase in borrowing base, Legacy expects to have approximately $130 million borrowing capacity available under its credit facility.
About Legacy Reserves LP
We are an independent oil and natural gas limited partnership headquartered in Midland, Texas, and are focused on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin and Mid-continent regions of the United States. Additional information is available at www.LegacyLP.com.
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