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Vanguard Natural Resources to buy NGLs from Hunt Oil

Staff writer ▼ | August 5, 2014
Vanguard Natural Resources has entered into a definitive agreement to acquire natural gas, oil and natural gas liquids (NGLs) assets in North Louisiana and East Texas for a purchase price of $278 million from Hunt Oil Company.
Vanguard Natural Resources
Oil industry   Estimated reserve life is 23 years
The properties consist of approximately 23,000 net acres that are currently producing approximately 17.5 MMcfe per day with approximately 68% natural gas and 33% oil and NGLs. The effective date of the acquisition is June 1, 2014 and the company anticipates closing this acquisition on or before October 1, 2014. The company intends to fund this acquisition with borrowings under its existing reserve-based credit facility.

Scott W. Smith, president and chief executive officer, commented, “This acquisition of mature, long life natural gas and oil properties is an excellent addition to our current portfolio of assets. Along with an established base of producing assets, this acquisition features an inventory of behind pipe and low risk vertical drilling projects that we will begin to develop in 2015.

In addition, based on our initial evaluation work, we believe there is the potential for meaningful horizontal drilling opportunities across some of the operated assets. With this transaction, we have established another core area from which we can continue to build upon in the future.”

Highlights of the acquisition include immediately accretive to distributable cash flow at closing; and estimated reserve life of over 23 years based on internally estimated proved reserves of approximately 150 Bcfe.