UPDATE 1-Vanguard Natural to buy oil and gas assets for $581 mln

Mon Dec 30, 2013 9:49am EST

* Vanguard buys from a unit of oil and gas producer Anadarko

* Natural gas constitutes 80 pct of output from the assets

* Deal to boost Vanguard's daily output by 55 pct on closing

Dec 30 (Reuters) - Vanguard Natural Resources LLC said it would buy natural gas and oil properties in the Pinedale and Jonah fields of southwestern Wyoming for $581 million from a unit of Anadarko Petroleum Corp.

Vanguard Natural shares rose 1 percent to $29.27 in early trading on Monday, while those of oil and gas producer Anadarko were unchanged at $79.45.

The deal would increase daily output by 55 percent and add to distributable cash flow immediately upon closing, expected on or before Jan. 31, Vanguard Natural said.

Vanguard produced 35,250 barrels of oil equivalent per day in the third quarter ended Sept. 30.

The transaction with Anadarko E&P Onshore LLC includes properties that span 14,000 net acres and produce about 113.4 million cubic feet equivalent per day.

Natural gas constitutes about 80 percent of production at the newly acquired properties, with natural gas liquids bringing in 16 percent. Oil comprises the rest.

Vanguard Natural buys and develops oil and gas assets in Wyoming's Bighorn basin.

The company also has assets across Permian Basin in West Texas and New Mexico, the Arkoma basin in Arkansas and Oklahoma, the Williston Basin in North Dakota and Montana, Mississippi, and South Texas.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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