- Immediately accretive to distributable cash flow;
- Proved reserves of approximately 420 Bcfe (58% proved developed and 82% natural gas);
- Reserve to production ratio of approximately 15 years;
- Current net production of approximately 76 MMcfe/d (91% natural gas) from 833 gross wells (134 producing wells to be operated by Vanguard in the Woodford Shale);
- Approximately 66,000 net acres in the Woodford Shale play and 5,300 net acres in the Fayetteville Shale play;
- Approximately 180 proved drilling locations with an average 22.5% working interest that are expected to generate superior returns even in a low gas price environment. We have also identified an additional 1,100 future proved drilling locations on acreage that is held by production that can be developed should natural gas prices return to the $4-$5 range; and
- Existing natural gas hedge book valued at approximately $100 million which we intend to restructure to cover 100% of expected proved production for the next five years at prices significantly higher than current market.
Vanguard Natural Resources, LLC (NYSE: VNR) (“Vanguard” or “the Company”) today announced that on June 29, 2012 it consummated the previously announced acquisition of natural gas and liquids assets from Antero Resources for an adjusted purchase price of $434.4 million, subject to customary final post-closing adjustments. The effective date of the acquisition is April 1, 2012. Significant benefits expected from the acquisition: