US based Legacy Reserves has acquired Permian Basin oil and natural gas assets in Texas from Concho Resources.
The purchase price after closing adjustments was $103.3m, and the assets produce an estimated 1,419 barrels of oil equivalent (boe) per day, of which 47% is oil.
Proved reserves are estimated to be 5.8mmboe, 88% of which are considered proved developed producing.
Approximately 60% of the properties are operated, and over 95% of the properties are near Legacy’s existing operations in multiple counties throughout the Permian Basin.
Legacy financed the acquisition with net proceeds of $83.8m from its equity offering which closed on 23 November 2010, with the balance funded from its existing credit facility and available cash.
Additionally, the company closed an acquisition of a Permian Basin property for $1.4m cash on 22 December 2010.