Vanguard Natural Resources to purchase South Texas properties

Vanguard Natural Resources is acquiring natural gas properties in South Texas for $53.4 million.

Houston-based Vanguard (NYSE: VNR) will pay an affiliate of Lewis Energy Group $32.04 million in cash and $21.36 million of equivalent VNR units for the properties, which have total estimated net proved reserves of 20 Bcfe as of June 1, 2008, of which about 98 percent is natural gas and 65 percent is proved developed. These reserves have a 1,150 Btu content.

Lewis will continue to operate all of the acquired wells and will continue to operate the undeveloped portion of the properties, which Vanguard and Lewis will jointly develop.

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This transaction is scheduled to close by the end of July.