Houston-based Vanguard Natural Resources announced Monday (July 2) that it has closed on the $434.4 million deal to acquire natural gas and liquids reserves and operations from Denver-based Antero Resources.
Vanguard Natural is a publicly traded energy company focused on the acquisition, production and development of oil and natural gas properties. Vanguard owns and manages oil and natural gas reserves in the Permian Basin, South Texas, Mississippi, Big Horn Basin in Wyoming and Montana, the Williston Basin in North Dakota and Montana and the Arkoma Basin in Arkansas and Oklahoma.
The Arkoma Basin includes natural gas plays in the Fort Smith region.
The Antero deal adds approximately 66,000 net acres in the Woodford Shale play and 5,300 net acres in the Fayetteville Shale play.
In that area, Vanguard says it has acquired 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.” The Vanguard statement also said the company has 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.
The company also said the new holdings have an existing natural gas hedge book valued at approximately $100 million. Vanguard officials say they will restructure the hedge so that 100% of the estimated production will be recovered during the next five years “at prices significantly higher than current market.”