By OGJ editors
HOUSTON, Mar. 21 -- Legacy Reserves LP signed a definitive purchase agreement to acquire oil and natural gas producing properties in the East Binger Unit (EBU) in Caddo County, Okla., from Nielson & Associates Inc. for $45 million in cash and stock.
Legacy, of Midland, Tex., plans to pay $30 million in cash and to issue 611,247 Legacy units to Nielson & Associates at closing. The acquisition is subject to customary closing conditions and is expected to close in mid-April. The project is to be operated through a joint venture company of which Legacy will own 50% interest.
EBU uses nitrogen injection pressure maintenance for enhanced oil recovery. The unit in the eastern Anadarko basin produces sweet crude and natural gas. Legacy's acquisition involves estimated proved reserves of 4.1 million boe and net production of 735 boe/d. The transaction involves more than 50 producing wells and 30 gas injection wells.