Houston independent Vanguard Natural Resources LLC agreed to acquire natural gas and associated liquids assets in the Woodford shale and Fayetteville shale of the Arkoma basin for $445 million from Antero Resources, Denver.
The transaction involves 66,000 net acres in the Woodford shale and 5,300 net acres in the Fayetteville shale. Closing is expected by June 29 with an effective date of Apr. 1.
Vanguard Pres. and Chief Executive Officer Scott W. Smith said the acquisition has an existing hedge that will allow Vanguard to achieve above-market pricing for several years.
The assets have proved reserves of 420 bcf of gas equivalent, of which 58% proved developed.
Current net production is 76 MMcfed, of which 91% is gas from 833 gross wells (134 producing wells to be operated by Vanguard in the Woodford shale).