Legacy Reserves LP Announces Joint Venture With Black Oak Resources
MIDLAND, Texas, Sept. 24, 2008 (GLOBE NEWSWIRE) — Legacy Reserves LP (Nasdaq:LGCY) today announced that is has entered into a commitment to invest up to $20 million over three years with Black Oak Resources, LLC (“Black Oak”), a partnership between Mike Black, and a partnership formed by Post Oak Energy Capital, LP (“Post Oak”) and Magnetar Capital (“Magnetar”). Black Oak and Legacy will jointly pursue oil and natural gas assets which have a high percentage of undeveloped reserves. The partnership has $110 million of equity commitments from Magnetar, Post Oak and affiliates of Mr. Black. Black Oak is led by Mike Black, a proven oil and gas entrepreneur who has grown and sold several successful private oil and gas companies. Crown Oil Partners III, LP, an affiliate of Mr. Black, sold $79.2 million of assets to Legacy on April 30, 2008, receiving 1,345,291 Legacy Reserves LP units as partial consideration.
Cary Brown, Legacy Chairman and Chief Executive Officer commented, “We are excited to partner with someone of Mike’s capability and integrity. Post Oak and Magnetar are impressive energy investors and we consider them invaluable partners in the Black Oak venture. The Black Oak joint venture will give Legacy the ability to participate in oil and gas acquisitions and projects with greater developmental upside than we typically pursue. We also look forward to increased deal flow as we can jointly pursue a larger universe of suitable assets for Legacy and Black Oak.”
Magnetar is an alternative investment manager based in Evanston, Illinois, with more than $8 billion in investor capital under management through its affiliate Magnetar Financial LLC, a Registered Investment Advisor with the SEC. Magnetar was founded in 2005.
About Post Oak
Post Oak Energy Capital is a private investment firm based in Houston, Texas dedicated to investing equity and debt in energy and energy service companies both domestic and international. Additional information is available at www.postoakenergy.com.
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 and Mid-continent regions of the United States. Additional information is available at www.LegacyLP.com.
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CONTACT: Legacy Reserves LP Steven H. Pruett, President and Chief Financial Officer 432-689-5200