Vanguard Natural Resources Signs Deal to Buy Properties in Permian Basin
Vanguard Natural Resources, LLC (NYSE: VNR) (“Vanguard” or “the Company”) today 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.
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