Legacy to Acquire Permian Basin Natural Gas Properties

Legacy Reserves is to buy Permian Basin natural gas properties for $67m in cash.

The assets include 126 wells located in Eddy and Chaves Counties, in New Mexico, US, 100 of which are operated.

The acquisition includes a natural gas gathering system and related compression facilities gathering gas from the acquired wells and some third-party wells.

Legacy Reserves chairman and CEO Cary Brown said the properties provide both established production and potential for development drilling.

“We expect this acquisition to be immediately and long-term accretive to our distributable cash flow per unit without any additional drilling,” Brown said.

The firm closed five oil and natural gas property acquisitions totalling $12.3m during the first quarter of 2011, and recently entered into two agreements to purchase additional properties worth $1.8m.