Legacy Oil + Gas Inc. has closed the acquisition of Highrock Energy Ltd. (Highrock) previously announced on May 7, 2014 (the "Acquisition"). Through the Acquisition, Legacy acquired high quality, high netback, light oil assets focused in its southeast Saskatchewan core areas for total consideration of 18.8 million Legacy common shares and assumed estimated net debt of $33.8 million. Highrock's net debt on closing was below 0.8 times estimated annualized funds flow from operations, resulting in a deleveraging of Legacy's balance sheet.
The producing properties are predominately operated with high working interests, 3D seismic coverage and control of key producing infrastructure and are associated with a light oil prospective undeveloped land base. The Acquisition also adds several key sections of land in Legacy's Taylorton/Pinto and Manor core properties and adds land in the emerging Torquay (Three Forks) play at Flat Lake and the emerging Duvernay play in Alberta.