Legacy Reserves to Acquire Oil and Gas Properties

Independent oil and gas partnership Legacy Reserves has entered into a definitive purchase agreement to acquire certain oil and natural gas producing properties from a third party for an aggregate purchase price of $82 million, subject to customary purchase price adjustments.

Legacy Reserves noted that the properties are primarily located in the Permian Basin and to a lesser degree in the US states of Oklahoma and Kansas.

The properties have estimated proved reserves of approximately 4.1 million barrels of oil equivalent (boe) of which 80% are developed producing reserves.

The proved reserves to production ratio is approximately 14 years and net production is approximately 793boe per day.

Legacy Reserves said that it has entered into New York Mercantile Exchange West Texas Intermediate oil swaps and Waha natural gas swaps related to this acquisition along with increasing the natural gas fixed price swap exposure on its existing assets in 2011 and 2012.