Legend Natural Gas To Acquire Barnett Properties For $900 Million: A Move To Enter The Shale Play- Deal Analysis From GlobalData

Legend Natural Gas To Acquire Barnett Properties For $900 Million: A Move To Enter The Shale Play- Deal Analysis From GlobalData

Summary

Legend Natural Gas IV, LP (Legend Natural Gas) entered into an agreement to acquire Barnett shale properties in the Fort Worth basin of Texas, from Range Resources Corporation (Range Resources) for a purchase consideration of $900m. The acquisition includes 390 producing wells covering approximately 52,000 net acres with a current production of approximately 113 million cubic feet of gas equivalent per day (MMcfe/d). Following the completion of the acquisition, Legend Natural Gas will be the operator of the newly acquired property. The transaction is subject to customary closing conditions and purchase price adjustments and is expected to close in late April 2011. Scotia Waterous (USA) Inc. is acting as financial advisor to Range Resources for the transaction. Range Resources intends to use the proceeds from the sale to fund its 2011 capital budget. The transaction implies deal values of $47,787.61 per boe of daily production and $17,307.69 per acre of land.

Scope

• Rationale behind Legend Natural Gas IV, LP acquiring Barnett shale properties in the Fort Worth basin,
• Strategic Benefits for the companies involved,
• Geography covered -The US

Reasons to buy

• Develop a sound understanding of the major M&A's, Partnerships, And Joint Ventures taking place in North America's Oil & Gas industry
• Identify the most lucrative segments to leverage on the growth oppurtunities available in the US' oil & gas market
• Get a detailed analysis of a deal to enable you to take better decisions