Houston-based Vanguard Natural Resources LLC (NASDAQ: VNR) has entered a definitive agreement to acquire natural gas, oil, and natural gas liquids (NGL) assets in North Louisiana and East Texas for $278 million from Dallas-based Hunt Oil Co.
The properties, including Cotton Valley and East Haynesville, consist of approximately 23,000 net acres that are currently producing approximately 17.5 million cubic feet of gas equivalent per day with approximately 67% natural gas and 33% oil and NGLs.
“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,” said Scott Smith, president and chief executive officer, Vanguard. “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.”
The effective date of the acquisition was June 1, and the company anticipates closing this acquisition on or before October 1.