Encore Energy Partners and Vanguard Natural Resources are set to expand operations in West Texas. The companies made $42.5 million acquisition in oil producing properties.
“Encore Energy Partners LP (NYSE: ENP) (the “Partnership” or “ENP”) today announced it has entered into a definitive agreement to acquire an undivided fifty percent interest in producing oil and gas assets in the Permian Basin of West Texas for a net purchase price of $42.5 million from a private seller. The other fifty percent interest in the assets is being acquired by Vanguard Natural Resources, LLC (NYSE: VNR) (“Vanguard”).The interests to be acquired by ENP have estimated total net proved reserves of 2.74 million barrels of oil equivalent, of which approximately 70% are oil and natural gas liquids reserves. The effective date of the acquisition is May 1, 2011 and the Company anticipates closing this acquisition on or before August 1, 2011.”
“Scott W. Smith, President and Chief Executive Officer, commented, ‘This acquisition is an excellent MLP type asset and is a great addition to our Permian Basin portfolio. This acquisition was done jointly with Vanguard Natural Resources, LLC pursuant to the Business Opportunity Policy in place between the two companies. These assets are expected to generate very stable cash flows and production for the next several years. Upon execution of the purchase and sale agreement for this transaction, we entered into hedges covering a substantial portion of the estimated production from this acquisition for the next several years.’ “
Read the full press release at encore-energy.com