Vanguard Natural Resources LLC (NASDAQ: VNR) has entered into a definitive agreement to acquire natural gas and oil properties in the Pinedale and Jonah fields of southwestern Wyoming for a purchase price of $581 million from an unnamed source.
The properties being sold consist of 87,000 gross acres (14,000 net acres) that are currently producing 113.4 Mmcfe per day, with 80% being natural gas, 4% oil and 16% natural gas liquids. The effective date of the acquisition is October 1, 2013, and the company anticipates closing this acquisition on or before January 31, 2014. At closing, Vanguard’s reserves and daily production will increase 80% and 55%, respectively, and the company will add an inventory of 970 proved undeveloped drilling locations.
Vanguard intends to fund this acquisition with borrowings under its existing reserve-based credit facility.