Legacy grows footprint in Alberta, Saskatchewan through acquisition deals
Energy firm pays $108.6 million for two separate deals to add to its existing light oil presence
Oil & Gas
mergers and acquisition
CALGARY – Legacy Oil and Gas Inc. says it is paying a total of $108.6 million in cash through two separate deals to add to its existing light oil presence in Saskatchewan and Alberta.
In the first transaction, Legacy is buying light oil producing assets, facilities and undeveloped land around Turner Valley, Alta., and Taylorton, Sask., for $57.5 million in cash. The deal, with an unidentified seller described as a “Canadian senior producer,” is expected to close in the second quarter.
The second deal will see Legacy acquire privately held Saskatchewan-based firm Villanova Oil Corp. for $21.3 million in cash and assume $29.8 million in debt. That deal is expected to close no later than May 23.
The lands being acquired currently produce 1,775 barrels of oil per day and have proved plus probable reserves of 9.1 million barrels. More than 13,000 hectares have not yet been developed.
Legacy said it now expects to produce 21,500 barrels per day by the end of this year – a 20% increase over its 2012 rate.
©The Canadian Press