Vanguard Natural Resources LLC (VNR) and Encore Energy Partners LP (ENP) announced the joint purchase of oil and gas assets in the Permian Basin in Texas. The properties were acquired from a private seller and the deal is expected to close by August 1, 2011.
The companies will pay a total of $85 million for the properties, which have net proved reserves of 5.48 million barrels of oil equivalent. Seventy percent of the proved reserves are composed of crude oil or natural gas liquids. The Permian Basin properties are expected to have total production of 1,000 BOE per day.
Vanguard Natural Resources LLC owns 46% of Encore Energy Partners LP and has offered to purchase the balance of the company for $567 million.