Houston-based MLP Vanguard Natural Resources LLC (NYSE: VNR) has closed its acquisition of producing oil and natural gas properties in South Texas from an affiliate of privately held San Antonio-based Lewis Energy Group LP for $52.25 million.

Total estimated proved reserves are 27 billion cubic feet equivalent as of July 1 (94 gas; 74% proved developed). Current net daily production is approximately 5 million cubic feet equivalent. The reserve-to-production ratio is approximately 15 years. Lewis will be operator.

Vanguard chief executive Scott W. Smith says, “We are very pleased to be able to announce this transaction with Lewis, our South Texas operating partner. When we closed our initial South Texas acquisition last summer, we indicated one of our goals was to add additional assets through subsequent acquisitions as Lewis looked to monetize mature assets to fund their exploration efforts. With an enviable leasehold position in the emerging Eagle Ford shale play, this transaction provides Lewis the opportunity to monetize a small percentage of its assets to provide capital for an exciting exploration opportunity. For Vanguard, this acquisition will increase our production and reserves and will increase the value of the collateral backing our reserve-based credit facility.”

The effective date is July 1.

At closing, Vanguard assumed natural gas puts and swaps based on Nymex pricing for approximately 61% of the estimated gas production from existing producing wells for the period beginning August 2009 through 2010. In addition, Vanguard entered into a costless collar for certain volumes in 2010 and a series of costless collars for a substantial portion of the expected gas production for 2011. In total, approximately 90% of the estimated gas production from existing producing wells was hedged through 2011 in a range of $7.50 to $8.50 per MMBtu.

Vanguard has interests in the southern portion of the Appalachian Basin, the Permian Basin and South Texas. Lewis focuses on South Texas.