Legacy Reserves to acquire Permian Basin and Wyoming assets

Legacy Reserves has entered two agreements to acquire oil and natural gas properties in the Permian Basin and Wyoming, US, for a total value of $72.5m.

Under the first agreement, Legacy will acquire Permian Basin assets in Lea, Eddy and Chaves counties, New Mexico, from a private seller for $20m in cash and 278,396 Legacy units.

The assets have a daily production capacity of 1.26MMcf of natural gas and 110 barrels of oil.

Legacy also entered a second agreement to acquire natural gas properties in Freemont County, Wyoming, which have a daily production capacity of 12.9MMcf of natural gas and 15 barrels of oil, for a total cash sum of $45m.

The acquisition also includes a natural gas gathering system, a gas processing plant and related compression facilities.

The acquisition will be financed through Legacy Reserves’ revolving credit facility.