MIDLAND, Texas, Dec. 20, 2012 (GLOBE NEWSWIRE) -- Legacy Reserves LP ("Legacy") (Nasdaq:LGCY) announced the closing of its acquisition of Permian Basin oil and natural gas properties from Concho Resources Inc. As previously announced, the properties are estimated to produce 5,238 barrels of oil equivalent ("Boe") per day in Q1 2013 from 1,584 existing wells. Proved reserves are estimated to be 25.6 MMBoe, 71% of which are considered proved developed producing and 14% of which are considered proved developed non-producing. Approximately 90.5% of the properties are operated, and 100% of the reserves are located in counties where Legacy currently has operations or adjacent thereto. Legacy financed the acquisition with the aggregate net proceeds from its recent 9,170,000 unit offering (inclusive of a partial exercise of the underwriters' option to issue additional units) and its recent $300 million 8% senior unsecured notes offering. Pursuant to the terms of the senior notes offering, the proceeds of such offering had been placed in escrow pending the closing of the acquisition of the Permian Basin oil and natural gas properties.
In connection with closing the acquisition, Legacy announced that it has secured commitments from its newly-increased bank group to expand its borrowing base to $800 million from the previous $600 million under its $1 billion secured revolving Credit Agreement with its Administrative Agent, Wells Fargo Bank, National Association, its Syndication Agent, Compass Bank, and its co-Documentation Agents, UBS Securities LLC and U.S. Bank National Association. The number of participating banks now includes twenty institutions.
Cary Brown, President and Chief Executive Officer commented, "We are glad to close this landmark acquisition and build upon our Permian footprint and expertise. These properties add significant scale to our operations and should provide decades of cashflow for our unitholders."
About Legacy Reserves LP
Legacy Reserves LP is an independent oil and natural gas limited partnership headquartered in Midland, Texas, focused on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin, Mid-Continent and Rocky Mountain regions of the United States. Additional information is available at www.legacylp.com.
The Legacy Reserves logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3201
Cautionary Statement Relevant to Forward-Looking Information
This press release contains forward-looking statements relating to our operations that are based on management's current expectations, estimates and projections about our operations. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "schedules," "estimated," and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are realized oil and natural gas prices; production volumes, lease operating expenses, general and administrative costs and finding and development costs; future operating results and the factors set forth under the heading "Risk Factors" in our annual and quarterly reports filed with the Securities and Exchange Commission. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Legacy undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Legacy Reserves LP
Dan Westcott, Executive Vice President and Chief Financial Officer
Source:Legacy Reserves LP