Legacy Oil + Gas shares rise as acquisition boosts production
CALGARY, Alberta May 8 (Reuters) - Shares in Legacy Oil + Gas Inc rose as much as 7.5 percent on Thursday after the mid-sized Canadian petroleum producer acquired a smaller rival and boosted its annual production target.
Legacy said late on Wednesday it had agreed to acquire closely held Highrock Energy Ltd for shares and debt worth about C$194 million ($177.9 million), gaining light oil production and exploration lands in southeastern Saskatchewan and elsewhere.
The company said the news lands are a good fit with its existing Saskatchewan properties. It raised its 2014 production target to 22,150 barrels per day, a 3.7 percent increase, as it adds Highrock's production of 2,000 barrels of oil equivalent per day.
It also adds 7.54 million barrels of oil equivalent of established reserves and 71,193 acres of exploration lands.
Legacy plans to issue 18.9 million shares to pay for Highrock and will assume C$33.8 million of debt. The deal is expected to close next month.
Legacy shares were up 34 Canadian cents to C$8.81 by late morning on the Toronto Stock Exchange after earlier touching C$9.105.
$1 = 1.0903 Canadian Dollars) (Reporting by Scott Haggett; Editing by Grant McCool)
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