Vanguard Natural Resources LLC,
Houston, (NYSE Arca: VNR) has acquired
producing properties in South Texas from
an affiliate of San Antonio-based Lewis
Energy Group for approximately $53.4
million in cash and stock.
Vanguard paid $32 million in cash and
1.35 million units worth $21 million based
on the 20-day average closing price.
Estimated proved reserves are 20 billion
cubic feet equivalent (65% proved
developed; 98% gas) in Dos Hermanos
Field in Webb County targeting the Olmos
trend. Production is approximately 3 million
cubic feet equivalent per day. The
reserve-to-production ratio is approximately
18 years. A five-year inventory of
proved undeveloped locations exist based
on a drilling plan of six to eight wells per
Lewis has more than 25 years of experience
in exploration and development of
the Olmos gas-producing trend and operates
more than 1,000 wells which currently
produce approximately 67 million cubic
feet per day net to Lewis’ interest.
Scott W. Smith, Vanguard president
and chief executive, says, “With this transaction,
Lewis has become one of our
largest unit-holders and we look forward to
benefitting from their operational expertise
with these properties and working with
them as we jointly develop our multi-year
inventory of proved undeveloped locations.”
Vanguard will assume hedges covering
approximately 85% of the estimated
proved developed production through
2011. The acquisition was funded from
borrowings from an existing credit facility,
cash on hand, and the units. The units are
locked-up for 180 days.
Vanguard focuses on the southern portion
of the Appalachian Basin, the Permian
Basin and South Texas. Lewis focuses on
North Hudson Launches $275 Million Oil, Gas Credit Fund
2023-01-31 - North Hudson said it's providing capital solutions to small- and mid-sized operators at a time when capital providers in the oil and gas sector are pulling back.
Venture Global Announces FID for Plaquemines LNG Phase II
2023-03-13 - U.S.-based Venture Global LNG announced a FID for phase two of its Plaquemines LNG facility as well as closing of $7.8 billion in project financing.
Despite Gas Price Slump, EOG Full Steam Ahead in Emerging Plays
2023-03-02 - Undeterred by volatility in U.S. natural gas prices, Houston-based EOG Resources plans to accelerate drilling and gas production this year, including its emerging plays in South Texas and the Utica Shale.
Exxon Set to Order 5th Guyana Oil Vessel, Sizing Up More Blocks
2023-01-17 - Since Exxon made Guyana's first offshore discovery in 2015, the South American country has become the world's fastest growing oil region, with estimates its fields could produce 1.64 MMbbl/d by the end of the decade.
Intensity Infrastructure Partners Secures Equity Backing from EIV Capital
2023-01-31 - In February, EIV Capital raised $702 million in funding and said it had more than $900 million to deploy into new investments.