Encore Energy Partners LP to Acquire Permian Basin Oil and Gas Properties
June 22 2011 - 4:52PM
Business Wire
Encore Energy Partners LP (NYSE: ENP) (the “Partnership” or
“ENP”) today announced it has entered into a definitive agreement
to acquire an undivided fifty percent interest in producing oil and
gas assets in the Permian Basin of West Texas for a net purchase
price of $42.5 million from a private seller. The other fifty
percent interest in the assets is being acquired by Vanguard
Natural Resources, LLC (NYSE: VNR) (“Vanguard”). Vanguard is the
general partner of ENP. The interests to be acquired by ENP have
estimated total net proved reserves of 2.74 million barrels of oil
equivalent, of which approximately 70% are oil and natural gas
liquids reserves. The properties being acquired are 100% proved
developed. At closing of this transaction, net production to ENP
attributable to the assets being acquired should be approximately
500 Boe/d. The effective date of the acquisition is May 1, 2011 and
the Company anticipates closing this acquisition on or before
August 1, 2011.
Scott W. Smith, President and Chief Executive Officer,
commented, “This acquisition is an excellent MLP type asset and is
a great addition to our Permian Basin portfolio. This acquisition
was done jointly with Vanguard Natural Resources, LLC pursuant to
the Business Opportunity Policy in place between the two companies.
These assets are expected to generate very stable cash flows and
production for the next several years. Upon execution of the
purchase and sale agreement for this transaction, we entered into
hedges covering a substantial portion of the estimated production
from this acquisition for the next several years.”
About Encore Energy Partners LP
Encore Energy Partners LP is a publicly traded master limited
partnership focused on the acquisition, production, and development
of oil and natural gas properties. ENP’s assets consist primarily
of producing and non-producing oil and natural gas properties in
the Big Horn Basin in Wyoming and Montana, the Williston Basin in
North Dakota and Montana, the Permian Basin in West Texas and New
Mexico, and the Arkoma Basin in Arkansas and Oklahoma. By virtue of
Vanguard’s acquisition of Encore Energy Partners GP LLC and certain
limited partner interests in Encore Energy Partners LP from Denbury
Resources Inc. on December 31, 2010, Vanguard now owns
approximately 46% of the common units of ENP. More information on
Vanguard can be found at www.vnrllc.com. More information on ENP
can be found at www.encoreenp.com.
Forward-Looking Statements
We make statements in this news release that are considered
forward-looking statements within the meaning of the Securities
Exchange Act of 1934. These forward-looking statements are largely
based on our expectations, which reflect estimates and assumptions
made by our management. These estimates and assumptions reflect our
best judgment based on currently known market conditions and other
factors. Although we believe such estimates and assumptions to be
reasonable, they are inherently uncertain and involve a number of
risks and uncertainties that are beyond our control. In addition,
management's assumptions about future events may prove to be
inaccurate. Management cautions all readers that the
forward-looking statements contained in this news release are not
guarantees of future performance, and we cannot assure you that
such statements will be realized or the forward-looking events and
circumstances will occur. Actual results may differ materially from
those anticipated or implied in the forward-looking statements due
to factors listed in the "Risk Factors" section in our SEC filings
and elsewhere in those filings. All forward-looking statements
speak only as of the date of this news release. We do not intend to
publicly update or revise any forward-looking statements as a
result of new information, future events or otherwise.
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