The acquired properties will produce a minimum of 300 barrels of oil equivalent per day of which 30% is crude oil.
Proven and probable reserves associated with the assets are anticipated to be one million barrels of oil equivalent for which the annualized cash flow is anticipated to be over $3m.
The two companies will commence due diligence to move towards a definitive agreement.
Legend president Marshall Diamond-Goldberg said the acquisition will add significant production and cash flow to Legend’s portfolio of assets which will help the company in its resource activity as well expand its activities on our American asset base.
"The ISR assets have been moderately developed in the past two years and we anticipate increasing production on the properties with a robust capital expenditure program over the next eighteen months," Diamond-Goldberg added.
The transaction is expected to close by 31 August, subject to ISR shareholder approval.
