Vanguard Natural Resources, LLC (NASDAQ: VNR) said Monday it is buying natural gas and oil properties in the Pinedale and Jonah fields of Southwestern Wyoming for $581 million from an unnamed source.
The properties being sold consist of about 87,000 gross acres (14,000 net acres) that are currently producing approximately 113.4 Mmcfe per day — with 80% being natural gas, 4% oil and 16% natural gas liquids (“NGLs”).
Houston-based Vangard expects to close the acquisition by January 31, 2014, it said in the statement.
The new assets with increase Vangard’s reserves and daily production by 80% and 55% respectively, Scott W. Smith, the CEO, said. And the new assets will add an inventory of approximately 970 proved undeveloped drilling locations.
Vangard said the estimated reserve life of the new properties is over 20 years based on its estimated proved reserves of 847 Bcfe