Vanguard Natural Resources signs agreement to acquire properties in the Permian Basin

Thursday, February 28, 2013
  • The properties being sold consist of approximately 7,000 net acres that are currently producing approximately 17 Mmcfe per day with approximately 41% being natural gas and 59% oil and NGLs.

Vanguard Natural Resources, LLC (NYSE: VNR) announced it has entered into a definitive agreement to acquire natural gas, oil and natural gas liquids assets in the Permian Basin located in southeast New Mexico and West Texas for a purchase price of $275 million from Range Resources Corporation. The properties being sold consist of approximately 7,000 net acres that are currently producing approximately 17 Mmcfe per day with approximately 41% being natural gas and 59% oil and NGLs. Based on internal reserve estimates, proved developed reserves account for 78% of the total 137 Bcfe. Mark S. Carnes, Director of Acquisitions commented, 'These properties are a nice complement to one of Vanguard's core operating areas and have some excellent behind pipe and development drilling opportunities that will enhance our cash flow as they are developed over the next four to six years.' The effective date of the acquisition is January 1, 2013 and the Company anticipates closing this acquisition on or before April 1, 2013.

Scott W. Smith, President and Chief Executive Officer, commented, 'After recent successful bond and equity offerings we are very pleased to sign another acquisition agreement that will put our liquidity to work. These assets will be an excellent addition to our portfolio in the Permian Basin as they have a reserve to production ratio of approximately 20 years.'

The Company intends to fund this acquisition with borrowings under its existing reserve-based credit facility.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

Related News

Join 70,000 other oil and gas professionals

Network with others, build your profile, and receive the latest oil and gas news in your inbox. It's free!

Your details are never shared or sold. We hate spam too.

» More Jobs       » Upload a free Job       » Upload your CV

  • Welder - Non Local

    Salary £0.00 per hour   |   Trades  |  England, Cumbria, Barrow-In-Furness

  • Senior Quality Advisor

    Salary £60000 - £65000 per annum + Negotiable Salary   |   Quality / Inspection  |  England, London

  • Machinery Engineers

    Engineer - Design & Construction  |  England, Surrey

  • Pipefitter

    Salary £23 per hour + Travel   |   Trades  |  Netherlands, Gelderland, Lochem

  • Instrument Engineer

    Salary £60000 - £70000 per annum   |   Engineer - Design & Construction  |  England, Norfolk, Great Yarmouth

  • Stores Coordinator

    Production  |  Scotland, Aberdeen

More Europe Jobs

More Global Jobs

Opinion & Commentary

  • Rosneft and Gazprom break into Brazil
    During the third quarter of 2014, both Rosneft and Gazprom have made notable advances into the Brazilian oil and gas sector. As of mid-July 2014, the Brazilian Na ...
  • For a few trillion barrels more
    Today, Scotland will vote on the following question: Should Scotland be an independent country? Answer YES and the vote is for independence, answer NO and the vote i ...

» More Opinion & Commentary         » Write for us             RSS RSS

Sponsor VideoYour video here

Visit FairfieldNodal to learn more.


Opinions & Commentary

Oil price, Ophir, Ithaca and sundry- FOGL-Thalassa- And finally...

by Malcolm Graham-Wood

Read More »