Vanguard Natural Resources LLC, Houston, has entered into a definitive agreement to acquire natural gas, natural gas liquids, and oil assets in North Louisiana and East Texas from Dallas-based Hunt Oil Co. for $278 million, effective June 1.
The transaction, expected to close on or before Oct. 1, encompasses 23,000 net acres in the Cotton Valley and East Haynesville currently producing 17.5 MMcfd of natural gas equivalent, of which 67% is gas and 33% is oil and NGLs.
Reserve life for the assets is estimated at 23 years based on proved reserves of 150 bcfe.
“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,” commented Scott W. Smith, Vanguard president and chief executive officer.
Vanguard will receive working interest in more than 290 producing wells and 78 proved undeveloped vertical drilling locations.
“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,” Smith said.
Vanguard’s assets consist primarily of producing and nonproducing oil and gas reserves in the Arkoma basin in Arkansas and Oklahoma (OGJ Online, June 5, 2012); the Gulf Coast basin in Texas and Mississippi; the Permian basin in West Texas and New Mexico; the Piceance basin in Colorado; the Williston basin in North Dakota and Montana; the Big Horn basin in Wyoming and Montana; and the Green River, Powder River, and Wind River basins in Wyoming (OGJ Online, Nov. 1, 2012).