Vanguard Natural Resources, LLC Signs Announces Closing of Assets in the Permian Basin

HOUSTON–(BUSINESS WIRE)– Vanguard Natural Resources, LLC (NYS: VNR) (“Vanguard” or “the Company”) today announced that on April 1, 2013 it consummated the previously announced acquisition of natural gas, oil and natural gas liquids assets in the Permian Basin located in southeast New Mexico and West Texas from two subsidiaries of Range Resources Corporation for an adjusted purchase price of $268.8 million, subject to customary final post-closing adjustments. The effective date of the acquisition is January 1, 2013.

The Company expects the following significant benefits from the acquisition:

• Immediately accretive to distributable cash flow;
• Company estimated proved reserves of approximately 137 Bcfe (78% proved developed with approximately 43% being natural gas, 25% oil and 32% NGLs);
• Reserve to production ratio of approximately 20 years;
• Current net production of approximately 17 MMcfe/d (41% natural gas) from 230 gross wells; and
• Significantly hedged the expected natural gas and oil production for the next four years

The Company funded this acquisition with borrowings under its existing reserve-based credit facility.

About Vanguard Natural Resources, LLC

Vanguard Natural Resources, LLC is a publicly traded limited liability company focused on the acquisition, production and development of oil and natural gas properties. The Company’s assets consist primarily of producing and non-producing oil and natural gas reserves located in the Permian Basin in West Texas and New Mexico, the Big Horn Basin in Wyoming and Montana, the Arkoma Basin in Arkansas and Oklahoma, the Piceance Basin in Colorado, the Powder River and Wind River Basin in Wyoming, the Williston Basin in North Dakota and Montana, Mississippi and South Texas. More information on Vanguard can be found at www.vnrllc.com.

Forward-Looking Statements

We make statements in this news release that are considered forward-looking statements within the meaning of the Securities Exchange Act of 1934. These forward-looking statements are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect …read more
Source: FULL ARTICLE at DailyFinance