Legacy Oil + Gas Inc. announces closing of light oil corporate acquisition


CALGARY, July 7 /CNW/ - Legacy Oil + Gas Inc. ("Legacy") (TSX:LEG) is pleased to announce that it has completed its previously announced acquisition (the "Acquisition") of CanEra Resources Inc. ("CanEra") a highly focused Alberta-based private oil company. Legacy paid $241 million in cash (subject to adjustment) and issued 20.5 million common shares to the former shareholders of CanEra pursuant to the Acquisition. Approximately 95 percent of the Legacy common shares issued pursuant to the Acquisition are subject to a contractual escrow arrangement preventing their resale for a period of 90 days following closing. Following completion of the Acquisition, J. Paul Charron, the former President and Chief Executive Officer of CanEra, was appointed to the board of directors of Legacy.

With the closing of the Acquisition, the outstanding subscription receipts of the Corporation have been exchanged for common shares effective today. Holders of subscription receipts will receive one common share for each subscription receipt held. Holders of subscription receipts are not required to take any action in order to receive the common shares to which they are entitled. The subscription receipts will be delisted from the TSX.

Through the Acquisition, Legacy is acquiring high quality, high netback, long life, light oil and liquids rich natural gas assets focused in southwest Alberta. CanEra's primary asset is the dominant, operated working interest in the 1.3 billion barrel original oil in-place and 1.6 Tcf original gas in-place (both figures from published ERCB estimates) Turner Valley field and associated gathering, treating and compression facilities. Legacy maintains its significant oil and NGL weighting at over 80 percent of proforma production and over 80 percent of proforma proved plus probable reserves.

Concurrently with the closing of the Acquisition, Legacy's banking syndicate, led by BMO Capital Markets and including National Bank, the Bank of Nova Scotia, ATB Financial, Canadian Imperial Bank of Commerce and Societe Generale (Canada Branch) has increased the borrowing base from the previous $150 million to $305 million. The next interim review is scheduled for October 31, 2010.

Legacy is a uniquely positioned, 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.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this RELEASE.

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SOURCE Legacy Oil + Gas Inc.

For further information: For further information: Trent J. Yanko, P.Eng., President + CEO, Legacy Oil + Gas Inc., 3900, Bow Valley Square II, 205 - 5th Avenue S.W., Calgary, AB, T2P 2V7, Telephone: 403.441.2300, Fax: 403.441.2017; Matt Janisch, P.Eng., Vice-President, Finance + CFO, Legacy Oil + Gas Inc., 3900, Bow Valley Square II, 205 - 5th Avenue S.W., Calgary, AB, T2P 2V7, Telephone: 403.441.2300, Fax: 403.441.2017

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