Legacy Oil + Gas Inc. announces closing of deleveraging light oil corporate acquisition
CALGARY, July 2, 2014 /CNW/ - Legacy Oil + Gas Inc. ("Legacy" or the "Company") (TSX:LEG) has closed the acquisition of Corinthian Exploration Corp. ("Corinthian"), previously announced on June 24, 2014 (the "Acquisition"). Through the Acquisition, Legacy acquired high quality, high netback, light oil assets focused in its North Dakota Spearfish core area for total consideration of approximately 20.1 million Legacy common shares and assumed net debt of approximately $34 million (subject to certain adjustments). Corinthian's net debt on closing was below 0.7 times estimated annualized funds flow from operations, resulting in a deleveraging of Legacy's balance sheet. The producing properties are predominately operated with high working interests, 3D seismic coverage and control of key producing infrastructure and are associated with a large, light oil prospective undeveloped land base. Reduced capital costs and increased initial well production rates have resulted in improved capital efficiencies in the play, enhancing the value of the significant pro forma Spearfish development drilling inventory. The Acquisition also includes a meaningful position in the Dunvegan light oil play in the Elmworth area of northwest Alberta, with production, undeveloped land and drilling upside and owned and operated key facilities and infrastructure. Legacy will examine alternatives for the Elmworth asset, which could include disposition.
Legacy is a uniquely positioned, well‐capitalized, technically driven, intermediate oil and natural gas company with a proven management team committed to aggressive, cost‐effective growth of light oil reserves and production in large hydrocarbon in‐place assets and resource plays. Legacy's common shares trade on the TSX under the symbol LEG.
This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale of securities mentioned in this press release in any state in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
SOURCE: Legacy Oil + Gas Inc.
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Trent J. Yanko, P.Eng.
President + CEO
Legacy Oil + Gas Inc.
4400 Eighth Avenue Place
525 - 8th Avenue SW
Calgary, AB T2P 1G1
Telephone: 403.441.2300
Fax: 403.441.2017
Matt Janisch, P.Eng.
Vice-President, Finance + CFO
Legacy Oil + Gas Inc.
4400 Eighth Avenue Place
525 - 8th Avenue SW
Calgary, AB T2P 1G1
Telephone: 403.441.2300
Fax: 403.441.2017
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