Legacy Acquires Significant Manitoba Oil Assets For C$185.4MM

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
185MM
Description

Acquired 9.1MMBO in proved reserves in SW Manitoba.

Legacy Oil + Gas Inc., Calgary, (Toronto: LEG) has closed its acquisition of oil assets in southwest Manitoba from Molopo Energy Canada Ltd., a subsidiary of Molopo Energy Ltd., Melbourne, (Australia: MPO)for approximately C$185.4 million in cash and stock.

Legacy paid C$93 million in cash and issued 6.18 million common shares for the Pierson-area assets, which include 9.1 million barrels of oil of proved reserves for an acquisition cost of C$18.89 per proved barrel. Daily production is 800 barrels of oil.

The 33,217-net-acre acquisition also includes eight gross (six net) standing wells awaiting completion.

FirstEnergy Capital Corp. was financial advisor to Legacy, while Macquarie Capital Markets Canada Ltd. and GMP Securities LP were strategic advisors.

In conjunction with the acquisition, Legacy raised C$139.9 million in a bought-deal financing co-led by GMP and Macquarie, and including FirstEnergy, BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., CanaccordGenuity Corp., Cormark Securities Inc. and Raymond James Ltd.