2011-03-09-2011-03-04

To buy majority interest in Samano and Santa Fe Vicksburg fields covering 7,200 net acres in Starr and Hidalgo counties, gaining 8.8 MMcfe/d.

Houston-based, privately held Legend Natural Gas IV LP plans to acquire a majority interest in the Samano and Santa Fe Vicksburg fields from Smith Production Inc. for $99.2 million.

In a separate transaction, Legend revealed itself as the buyer of a majority position in Range Resources' Barnett shale assets for $900 million. The deal is expected to close in late April. Scotia Waterous is advisor to Range.

The Smith deal involves 7,200 net acres in Starr and Hidalgo Counties, Texas, about 20 miles from Legend's West La Grulla Field. The properties include 83 operated wells, which are producing 8.8 million cubic feet equivalent per day net (65% gas). Legend will operate the properties.

The deal is expected to close in late March. The effective date is Jan. 1.

Legend's equity provider is Riverstone/Carlyle Global Energy and Power Funds, a group of energy-focused private equity funds managed by Riverstone Holdings LLC.

Legend Natural Gas IV is managed by Legend Natural Gas LLC, which also manages two other active limited partnerships, Legend Natural Gas II LP and Legend Natural Gas III LP. Through these partnerships, Legend operates more than 400 wells in the Gulf Coast, South Texas and the Permian Basin. The first partnership, Legend Natural Gas, LP, was formed in 2001 by James A. Winne III and Michael Becci, who are president and chief executive, and vice president and chief financial officer of Legend, respectively.