?Legacy Reserves LP, Midland, Texas, (NasdaqGS: LGCY) plans to acquire 100% of the membership interests of Pantwist LLC, from Cano Petroleum Inc., Fort Worth, Texas, (Amex: CFW) for $42.7 million in cash.


The assets include an estimated 453 BOE per day of production (72% oil and gas liquids). Proved reserves are 3.1 million BOE (100% proved developed producing). The closing was expected on Oct. 1.


Legacy also closed its acquisition of assets from Gryphon Production Co. LLC for approximately $13 million. Assets include an estimated 115 BOE per day (92% oil and gas liquids). Proved reserves are 1.6 million BOE (61% proved developed producing). The balance of the proved reserves is associated with Legacy’s plans to reactivate up to 300 available wellbores.


More than 98% of the assets from both transactions are operated and are in Carson, Gray, Hutchinson and Moore counties in the Texas Panhandle near Legacy’s existing assets.


Legacy chairman and chief executive Cary Brown says, “These acquisitions demonstrate our commitment to the Panhandle of Texas as a second core area for Legacy Reserves. The Panhandle fits our strategy to acquire long-lived reserves.”


He says Legacy will operate more than 1,000 wells and own interests in approximately 1,500 non-operated wells through the deal.


“Including the pending Pantwist acquisition, we will have acquired oil and gas properties aggregating approximately $209 million year to date, which is approaching the goal we set at the beginning of 2008,” he says.
Legacy entered into commodity swaps related to the transactions.

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