Attached files
| file | filename |
|---|---|
| 8-K - Vanguard Natural Resources, Inc. | form8-k.htm |
| EX-99.2 - PRESS RELEASE DATED DECEMBER 4, 2009 - Vanguard Natural Resources, Inc. | exhibit99-2.htm |
| EX-10.2 - EXHIBIT 10.2 - Vanguard Natural Resources, Inc. | exhibit10-2.htm |
| EX-10.1 - EXHIBIT 10.1 - Vanguard Natural Resources, Inc. | exhibit10-1.htm |
| EX-10.3 - EXHIBIT 10.3 - Vanguard Natural Resources, Inc. | exhibit10-3.htm |
Exhibit
99.1
Vanguard
Natural Resources to Acquire Oil Properties in the Permian Basin
Houston, November 30, 2009 – (Business Wire) –
Vanguard Natural Resources, LLC (NYSE VNR) (“Vanguard” or “Company”) today
announced it has entered into a definitive agreement to acquire producing oil
and gas assets in the Permian Basin for $55 million from a private seller. The
properties to be acquired have estimated total proved reserves of 3.2 million
barrels of oil equivalent, of which approximately 83% are oil reserves and 65%
are proved developed. Current net production attributable to the assets being
acquired is approximately 780 Boe/d. At closing, Vanguard will operate the
majority of the producing wells located on the acquired properties.
The effective date of the acquisition is October 1, 2009 and the Company
anticipates closing this acquisition during December 2009.
Scott W.
Smith, President and Chief Executive Officer, commented that “The assets being
acquired in this transaction are an excellent addition to our existing Permian
Basin operating platform. As the operator of the assets, we have
plans for a development drilling program over the next several years that should
maintain our production rates at or above current levels for these properties.
These assets are primarily oil production and with the hedges we contemplate
putting in place upon closing the acquisition, this acquisition should be a
major contributor to our cash flow next year and for several years
thereafter”.
After
closing this transaction, management intends to recommend to the Company’s Board
of Directors an increase in the quarterly distribution rate for the fourth
quarter 2009 distribution payable on February 14, 2010. The Company
is currently distributing $0.50 per quarter ($2.00 annualized).
The
Company intends to fund this acquisition with borrowings under its existing
reserve-based credit facility. Vanguard has requested that the banks perform an
interim borrowing base redetermination to include the properties from this
acquisition. We anticipate an increase to the current borrowing base
of $170 million to take into account the additional value of the assets being
acquired.
About
Vanguard Natural Resources, LLC
Vanguard
Natural Resources, LLC is a publicly traded limited liability company focused on
the acquisition, production and development of natural gas and oil properties.
The Company's assets consist primarily of producing and non-producing natural
gas and oil reserves located in the southern portion of the Appalachian Basin,
the Permian Basin and South Texas. More information on the Company can be found
at www.vnrllc.com.
Forward-Looking
Statements
This
press release includes "forward-looking statements" within the meaning of the
federal securities laws. All statements, other than statements of historical
facts, included in this press release that address activities, events or
developments that the Company expects, believes or anticipates will or may occur
in the future are forward-looking statements. These statements include but are
not limited to statements about the acquisition announced in this press release,
the related financing plans, and statements with respect to future
distributions. These statements are based on certain assumptions made by the
Company based on management's experience and perception of historical trends,
current conditions, anticipated future developments and other factors believed
to be appropriate. Such statements are subject to a number of assumptions, risks
and uncertainties, many of which are beyond the control of the Company, which
may cause actual results to differ materially from those implied or expressed by
the forward-looking statements. These include risks relating to financial
performance and results, availability of sufficient cash flow to pay
distributions and execute our business plan, prices and demand for oil, natural
gas and natural gas liquids, our ability to replace reserves and efficiently
develop our current reserves and other important factors that could cause actual
results to differ materially from those projected as described in the Company's
reports filed with the Securities and Exchange Commission. Please see "Risk
Factors" in the Company's public filings.
Any
forward-looking statement speaks only as of the date on which such statement is
made and the Company undertakes no obligation to publicly correct or update any
forward-looking statement, whether as a result of new information, future events
or otherwise.
CONTACT:
Vanguard Natural Resources, LLC
Investor
Relations
Lisa
Godfrey, 832-327-2234
investorrelations@vnrllc.com
SOURCE:
Vanguard Natural Resources, LLC