Legend Natural Gas IV has entered into two agreements to buy oil and gas producing properties in Texas for a total combined price of about $1bn.
One acquisition marks the company’s entry into the horizontal Barnett Shale resource play in the Fort Worth basin of Texas, while the other consists of conventional Vicksburg production that complements Legend’s long standing position in South Texas.
Legend will acquire the Barnett properties, which include 390 producing wells and about 52,000 net acres, from a subsidiary of Range Resources for about $900m.
In addition, the company will buy a majority interest in the Samano and Santa Fe Vicksburg fields from Smith Production for about $99.2m.
These fields are in Starr and Hidalgo counties, Texas, and the properties include 83 operated wells that are producing 8.8mmcfe per day net (65% gas) and approximately 7,200 net acres.
The company will be the operator of the newly acquired properties.
Legend is engaged in the acquisition and development of natural gas and oil reserves onshore US basins.