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Oil & Gas Financial Journal

Midland, Tex.-based Legacy Reserves LP has increased the borrowing base from its credit facility from a group of banks led by BNP PARIBAS to $272 million from the previous $225 million.

It will be further increased to $320 million coincident with the acquisition of Permian basin and Mid-continent producing properties, which is scheduled to close on April 30, 2008.

The purchase price for the acquisition will consist of $55 million in cash, before closing adjustments, and 1,345,291 newly issued units representing limited partner interests in Legacy Reserves LP.

Urals Energy sells non-core Russian assets for $93M

Urals Energy Public Co. Ltd., an independent exploration and production company with operations in Russia, reports the sale of certain of its non-core assets in the Komi Republic. The company is in the process of streamlining its portfolio to focus on its major assets in East Siberia.

The assets in the Komi Republic of Russia are set to be sold to a private third party buyer for a gross price of $93.5 million payable in cash, adjusted for current working capital. The net proceeds of the sale will be used to support the continued development of the company's assets and for general corporate needs.

The company continues to evaluate possible disposals of other non-core assets. Additionally, Bob Maguire has resigned his position as non-executive director.

Petroflow to sell CBM operation for $29

Petroflow Energy Ltd. has entered into a definitive purchase and sale agreement to sell its San Juan Basin coal bed methane property. The sale, which is still subject to due diligence on the part of the purchaser, is scheduled to close in May, 2008 for gross cash proceeds of $29 million.

The company expects the sale will effectively increase the available borrowing capacity by $17 million less commissions and other costs attributable to the sale. In conjunction with the company's previous credit facility, the sale will add roughly $51 million to the company's available funds since the end of 2007.

Superior Offshore may be dropped from NASDAQ

Superior Offshore International Inc. has received a delisting notice from the Nasdaq's Listing Qualifications Department citing the company's failure to timely file its Annual Report on Form 10-K for the year ended December 31, 2007.

The company's common stock is subject to delisting at the opening of business on April 28, unless the company requests a hearing. The company does not intend to request such a hearing.

Alliance struck between Knowledge Reservoir, 3GiG

Knowledge Reservoir LLC, a geoscience and engineering consulting company, and 3GiG LP, a provider of upstream business process, knowledge, decision and project information management technology, have formed an alliance to offer business process and well lifecycle management services.

GeoMechanics launches 3D geomechanics services