Under the terms of the $525m agreement, Vanguard Natural will acquire properties comprising approximately 12,000 net acres that are currently producing approximately 67 MMcfe per day, after consideration of ethane rejection, with approximately 76% natural gas, 5% oil and 19% NGLs.
The transaction is scheduled to be completed before 01 October 2014.
With a reserve life of approximately 16 years, the assets have an estimated proved reserves of about 389 billion cubic feet equivalent with 79% proved developed and 77% natural gas.
Vanguard will also own an average of 78% working interest in approximately 950 producing wells, 119 recompletion projects and 94 proved undeveloped vertical drilling locations.
The assets have approximately 11% of projected proved developed production three-year average annual decline rate.
In addition to enclosing a portion of the natural gas production through 2017, Vanguard aims to opportunistically hedge the remaining expected natural gas, oil and NGL production for 2015 through 2017.
Vanguard Natural Resources president and chief executive officer Scott Smith said: "We will be taking over operations of 950 producing wells in a very large, prolific natural gas basin with an established infrastructure in place and multiple pipeline outlets to market our production."
