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Houston-based Vanguard Natural Resources bought 12,000 net acres in the Piceance Basin in Colorado for $525 million Tuesday from Denver-based Bill Barrett Corporation.

The deal includes natural gas, oil and natural gas liquids (NGL) assets that are currently producing 67 million cubic feet equivalent per day.

The assets are comprised of approximately 76 percent natural gas, 19 percent NGLs and five percent oil.

The assets have a reserve life of approximately 16 years and estimated proved reserves of about 389 billion cubic feet equivalent with 79 percent proved developed and 77 percent natural gas.

Vanguard will hold an average 78 percent working interest in approximately 950 producing wells, 119 recompletion projects and 94 proved undeveloped vertical drilling locations.

The assets have a projected proved developed production three-year average annual decline rate of approximately 11 percent.

Vanguard has hedged a portion of the natural gas production through 2017 and intends to opportunistically hedge the remaining expected natural gas, oil and NGL production for 2015 through 2017.

The deal is effective as of July 1, 2014 and is expected to close on or before October 1, 2014.