Legacy Reserves LP said that it reached an agreement to buy oil and gas assets located in West Texas from Brigham Exploration Company (BEXP).
Legacy Reserves LP agreed to pay $14 million for proved developed producing properties with 602,000 barrels of oil equivalent (BOE) of reserves. The properties produced an average of 213 BOE per day in December 2009.
Legacy Reserves LP specializes in purchasing oil and gas assets in the Permian Basin of West Texas, the Mid-continent area and the Rocky Mountains region of the United States.
This was the second recent purchase by Legacy Reserves LP. In February 2010, the company purchased 13 oil fields in Wyoming from St. Mary Land and Exploration Company (SM). Legacy Reserves LP paid approximately $125 million for these properties.
Legacy Reserves LP had proved reserves of 37.1 million barrels oil equivalent (BOE) prior to the two most recent purchases. Seventy two percent of the reserves were oil.
Legacy Reserves LP is headquartered in Midland, Texas, and is organized as a master limited partnership. The company currently pays out $2.08 per unit, and has a yield of 9%.