Encore Energy Partners to Acquire 50% of Permian Basin Oil and Gas Properties
Encore Energy Partners LP (NYSE: ENP) today announced it has entered into a definitive agreement to acquire an undivided fifty percent interest in producing oil and gas assets in the Permian Basin of West Texas for a net purchase price of $42.5 million from a private seller.
The other fifty percent interest in the assets is being acquired by Vanguard Natural Resources, LLC (NYSE: VNR). Vanguard is the general partner of ENP. The interests to be acquired by ENP have estimated total net proved reserves of 2.74 million barrels of oil equivalent, of which approximately 70% are oil and natural gas liquids reserves.
The properties being acquired are 100% proved developed. At closing of this transaction, net production to ENP attributable to the assets being acquired should be approximately 500 Boe/d. The effective date of the acquisition is May 1, 2011 and the Company anticipates closing this acquisition on or before August 1, 2011.
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