•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    Legend partnerships merge; close $900M Barnett Shale purchase

    The Legend Natural Gas partnerships (composed of Legend Natural Gas II, LP, Legend Natural Gas III, LP and Legend Natural Gas IV, LP) have merged into one holding company and closed on the acquisition of $900 million in Barnett Shale assets from Range Resources Corp. (NYSE: RRC).

    The new partnership, Legend Production Holdings LLC also closed on a $1.5 billion senior secured revolving facility which, along with additional contributed equity, funded the Range acquisition as well as future growth opportunities. The credit facility was funded by a syndication of banks led by Wells Fargo Securities and J.P. Morgan Chase.

    Houston-based Legend Natural Gas announced its entry into the horizontal Barnett Shale resource play in early 2011. Assets acquired include 390 producing wells and approximately 52,000 net acres, 80% of which are located in the prolific core area of the Barnett trend. Daily net production from the properties was 113 Mmcfe per day (86% gas) as of February 1, 2011, the effective date of the purchase. Legend will serve as operator.

    The Range acquisition follows a $99.2 million acquisition of conventional South Texas Vicksburg production from a subsidiary of Smith Production Co., which closed on March 31, 2011. Legend acquired a majority interest in the Samano and Santa Fe Fields located in Starr, Brooks, and Hidalgo Counties, Texas. The properties include 103 wells producing approximately 9 MMcfe per day net (65% gas) on 7,200 net acres. Legend will serve as operator.

    Legend Production now owns an interest in approximately 800 operated, producing wells located in three core areas: the Fort Worth Basin, the Permian Basin and South Texas. Legend Production is currently exploring and developing its acreage position in the emerging Bone Spring/Avalon/Wolfcamp shale plays of the Delaware Basin in New Mexico and West Texas.

    Equity for all of the Legend partnerships is provided by the Riverstone/Carlyle Global Energy and Power Funds, a group of energy-focused private equity funds managed by Riverstone Holdings LLC.

    Related Articles

    PennTex to build gathering, processing platforms in Permian and Lousiana

    08/18/2014

    PennTex Midstream Partners LLC has signed two separate midstream transactions to build two significant gathering and processing platforms in the Permian Basin and Northern Louisiana.

    Oilfield water management

    08/11/2014

    Today, much more attention is being paid to issues surrounding the management of oilfield water used in upstream oil and gas operations.

    BridgeTex Pipeline extends open season

    08/11/2014 Magellan Midstream Partners LP and Occidental Petroleum Corp. report that BridgeTex Pipeline has extended its supplemental open season for additional transportation commitments on the pipeline. Bin...

    North American shale update

    08/11/2014

    Rystad Energy estimates that the total liquid supply from North American shale production will increase by 1.4 million barrels of oil equivalent per day in 2014 compared to 2013.

    RSP Permian prices common stock offering

    08/08/2014 RSP Permian Inc. has priced an underwritten public offering of 10,000,000 shares of its common stock at $25.65 per share. The company is selling 4,166,667 shares of its common stock, and the sellin...

    More Oil & Gas Financial Articles

    PennTex to build gathering, processing platforms in Permian and Lousiana

    Mon, Aug 18, 2014

    PennTex Midstream Partners LLC has signed two separate midstream transactions to build two significant gathering and processing platforms in the Permian Basin and Northern Louisiana.

    Oilfield water management

    Mon, Aug 11, 2014

    Today, much more attention is being paid to issues surrounding the management of oilfield water used in upstream oil and gas operations.

    BridgeTex Pipeline extends open season

    Mon, Aug 11, 2014

    Magellan Midstream Partners LP and Occidental Petroleum Corp. report that BridgeTex Pipeline has extended its supplemental open season for additional transportation commitments on the pipeline. Binding commitments are now due by 5 p.m. Central Time on Aug. 14.

    North American shale update

    Mon, Aug 11, 2014

    Rystad Energy estimates that the total liquid supply from North American shale production will increase by 1.4 million barrels of oil equivalent per day in 2014 compared to 2013.

    RSP Permian prices common stock offering

    Fri, Aug 8, 2014

    RSP Permian Inc. has priced an underwritten public offering of 10,000,000 shares of its common stock at $25.65 per share. The company is selling 4,166,667 shares of its common stock, and the selling stockholders are selling 5,833,333 shares of the company's common stock.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ