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.


 

Join 80,000 oil and gas professionals who receive our weekly newsletter.

You may unsubscribe at any time with one click.

Article Tags

Vanguard Natural Resources United States North America Finance Houston


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


Upcoming OilVoice Training Course

Mastering 4D Seismic
This is an intensive day’s course covering all aspects of time-lapse seismic (4D) methodology so that attendees can participate in any aspect of 4D technology. The course gives a perspective on the development of 4D seismic from the 1980’s to its present use in mature areas. Linkages with Reservoir ...
London - 15 Sep


Trainer
Ian Jack

Cost
£500

Discount Code
OilVoice-10 for 10% off any course.View Course

All OilVoice Training Courses
Popular Headlines View all


Latest Opinion View all

Join 90,000 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!

Create profile

Time for a change? All jobs Jobs near you

Engineers & Scientists Munich and The Hague

Senior HSE Engineer United Arab Emirates

PMC HSE Manager United Arab Emirates

Offshore Safety Officer Abu Dhabi

Site Supervisor - DR Congo Democratic Republic of the Congo

Project Engineer United Arab Emirates

Managing Director (MD) - UAE United Arab Emirates


OilVoice Training All upcoming


About

OilVoice, established in 2002, is your leading source of upstream news, jobs and industry information.


Newsletter

Each week we send our weekly industry round-up. Why not try it? You may unsubscribe at any time.

Contact OilVoice

Milton Keynes
United Kingdom
Phone: +44 207 993 5991
Contact Us


Stay Connected


2015 © OilVoice  .  Privacy Policy  .  Terms of Service  .  Oil Careers  .  Advertise with us