Marissa Hall | Shale Plays Media
An agreement between Vanguard Natural Resources, LLC (VNR) and Hunt Oil Company this week will provide 23,000 acres of land with VNR. The acquisition, expected to be complete by October 1, 2014, produces 17.5 MMcfe per day from the Haynesville shale. Bob Cramer for Bidnessetc.com reports:
The acquisition is valued at $278 million will be funded through the company’s reserve-based credit facility. According to the company’s CEO and President Scott W. Smith this acquisition of mature and long-life NGL assets will be added to the current portfolio of producing assets with the opportunity of low risk vertical drilling projects to be developed in 2015.
Production from the land is made up largely of natural gas, unsurprising given the quantity of dry gas in the Haynesville shale, with only a third being oil and natural gas liquids.
According to estimates, reserves present in the land to be acquired in North Louisiana and East Texas, come to about to 150 Bcfe, which will last for 23 years, with 290 producing wells and 78 potentially proved vertical drilling sites which have not been developed yet. The company’s current assets include producing and non-producing reserves located in Wyoming, Arkansas and Oklahoma.
Check out Cramer’s full article for more details: Vanguard to acquire Hunt Oil’s assets in North Louisiana, East Texas