Profile: Vanguard Natural Resources LLC (VNR.O)
27 Jul 2016
Vanguard Natural Resources, LLC, incorporated on October 17, 2006, is focused on the acquisition and development of oil and natural gas properties in the United States. Through its operating subsidiaries, the Company owns properties, and oil and natural gas reserves primarily located in over 10 operating basins: the Green River Basin in Wyoming; the Permian Basin in West Texas and New Mexico; the Gulf Coast Basin in Texas, Louisiana, Mississippi and Alabama; the Anadarko Basin in Oklahoma and North Texas; the Piceance Basin in Colorado; the Big Horn Basin in Wyoming and Montana; the Arkoma Basin in Arkansas and Oklahoma; the Williston Basin in North Dakota and Montana; the Wind River Basin in Wyoming, and the Powder River Basin in Wyoming.
The Company owns working interests in approximately 14,460 gross (over 5,280 net) productive wells. In addition, the Company owns approximately 881,510 gross undeveloped leasehold acres surrounding its existing wells. The Company's subsidiaries include Vanguard Natural Gas, LLC (VNG), VNR Holdings, LLC (VNRH), Vanguard Operating, LLC (VO), VNR Finance Corp. (VNRF), Encore Clear Fork Pipeline LLC, Escambia Operating Co. LLC (EOC), Escambia Asset Co. LLC (EAC), Eagle Rock Energy Acquisition Co., Inc. (ERAC), Eagle Rock Upstream Development Co., Inc. (ERUD), Eagle Rock Energy Acquisition Partnership, L.P. (ERAP), Eagle Rock Energy Acquisition Co. II, Inc. (ERAC II), Eagle Rock Upstream Development Co. II, Inc. (ERUD II) and Eagle Rock Energy Acquisition Partnership II, L.P. (ERAP II).
Green River Basin Properties
The Company's Green River Basin properties consist of assets in the Pinedale and Jonah fields of southwestern Wyoming. The Pinedale field lies at depths between 11,000 to 14,000 feet with similar depths in the adjacent Jonah field. In addition, it has Green River Basin properties located in the Hay Reservoir, Great Divide, Siberia Ridge, Wamsutter, Echo Springs and Standard Draw fields in southwestern Wyoming. Its properties located in south central Wyoming in the Sierra Madre field produce oil from fractured cretaceous aged Niobrara limestone (between 5,000 and 6,000 feet) and conventional Shannon sandstone (between 3,500 and 4,000 feet). Its Green River Basin properties consist of approximately 126,420 gross (35,170 net) leasehold acres. The Green River Basin properties produce approximately 48,390 million cubic feet equivalent (MMcfe) of which over 86% is natural gas. The properties have total proved reserves of approximately 684,190 MMcfe.
Permian Basin Properties
The Permian Basin is an oil and natural gas producing basin in the United States extending over West Texas and southeast New Mexico. The Company's Permian Basin properties are located in various counties, which extend from Eddy County, New Mexico to Eastland County, Texas and encompass fields with various producing intervals. Its producing wells in the Permian Basin are mature oil wells that also produce high-British thermal unit (Btu) casinghead gas with natural gas liquids (NGLs) content. These properties primarily produce at depths ranging from 2,000 feet to 12,000 feet. Its Permian Basin properties consist of approximately 326,180 gross (over 250,710 net) leasehold acres. Its Permian Basin operations produce approximately 13,620 MMcfe of which over 68% is oil, condensate and NGLs.
Gulf Coast Basin Properties
The Company's Gulf Coast Basin properties include properties in the onshore Gulf Coast area, North Louisiana, Alabama, East Texas, South Texas and Mississippi. These properties include various productive zones, including Cotton Valley, James Lime, Pettet, Haynesville, Smackover and Hosston. East Haynesville is located in Claiborne Parish, Louisiana and lies at a depth of approximately 9,000 to 11,000 feet. The Cotton Valley field is located in Webster Parish, Louisiana and produces from an average depth of 11,000 feet. Its Alabaman properties include the Big Escambia Creek, Flomaton and Fanny Church fields located in Escambia County, Alabama. These fields produce from either the Smackover or Norphlet formations at depths ranging from approximately 15,000 to 16,000 feet. The Fanny Church field is located approximately two miles east of Big Escambia Creek. The Flomaton field is adjacent to and partially underlies the Big Escambia Creek field and produces from the Norphlet formation at depths from approximately 15,000 to 16,000 feet. Its South Texas producing properties are located in Dewitt, Hidalgo, LaSalle, Live Oak and Webb Counties.
The Company's East Texas producing properties include the Fairway (James Lime Unit) field in Henderson and Anderson counties, which is produced from an average depth of approximately 10,000 feet. Other East Texas properties produce from the Smackover formation at an average depth of approximately 13,500 feet and are located in Henderson, Rains, Van Zandt and Wood Counties. The Company operates its Mississippi properties, which are located in the Mississippi Salt Basin. Its production is mainly oil that produces from the Hosston Formation from a depth ranging from 13,000 feet to 15,000 feet. Its other Mississippi properties are located in Covington, Jasper, Clarke, Leflore, Jefferson Davis, Wayne and Walthall Counties. Production from its properties in the onshore Gulf Coast Basin comes from the Silsbee Field in Hardin County, Texas. Its Gulf Coast Basin properties consist of approximately 206,690 gross (over 107,030 net) leasehold acres. The Gulf Coast Basin properties produce approximately 12,840 MMcfe, of which over 47% is oil, condensate and NGLs.
Anadarko Basin Properties
The Anadarko Basin consists of operated and non-operated properties in the Golden Trend field, Cana (Woodford) shale play, Verden field, and other fields located in the Anadarko Basin of western Oklahoma. The Company's producing field in the region is the Golden Trend field, which extends across Grady, McClain and Garvin Counties in Oklahoma. Its net acres in these plays extend across Canadian, Blaine, Dewey, Grady, Garvin, McClain and Stephens Counties in Oklahoma. The Cana and Southeast Cana Shale produce from horizontal wells drilled to vertical depths of 11,000 to 16,000 feet and extended with horizontal lateral lengths of 5,000 to 10,000 feet. Its Anadarko Basin properties consist of approximately 221,120 gross (over 55,550 net) leasehold acres. The Anadarko Basin properties produce approximately 4,890 MMcfe, of which over 54% is oil, condensate and NGLs.
Piceance Basin Properties
The Piceance Basin is located in northwestern Colorado. The Company's Piceance Basin properties are located in the Gibson Gulch. The Gibson Gulch area is a basin-centered gas play along the north end of the Divide Creek anticline near the eastern limits of the Piceance Basin's productive Mesaverde (Williams Fork) trend at depths of 6,000 to 8,000 feet. Its Piceance Basin properties consist of approximately 24,040 gross (over 16,070 net) leasehold acres. Its properties in the Piceance Basin produce approximately 33,230 MMcfe, of which over 71% is natural gas.
Big Horn Basin Properties
The Company's Elk Basin field is located in Park County, Wyoming and Carbon County, Montana. The Company operates its properties in the Elk Basin area, which includes the Embar-Tensleep, Madison and Frontier formations. The wells in the Madison formation of the Elk Basin field are drilled to a depth of 4,400 to 7,000 feet. The wells in the Frontier formation of the Elk Basin field are typically drilled to a depth of 1,400 to 2,700 feet. The Company operates and owns approximately 62% interest in the Elk Basin natural gas processing plant near Powell, Wyoming. ExxonMobil Corporation (Exxon) owns approximately 34% interest in the Elk Basin natural gas processing plant, and other parties own over 4% interest. This plant is a refrigeration natural gas processing plant that receives natural gas supplies through a natural gas gathering system from Elk Basin fields. It also operates and owns the Wildhorse pipeline system, which is an approximately 12-mile natural gas gathering system that transports approximately 1.0 MMcf/day of low-sulfur natural gas from the South Elk Basin fields to the Elk Basin natural gas processing plant. Its Big Horn Basin properties consist of assets in Wyoming and the Elk Basin field in south central Montana. The Company owns working interests ranging from 25% to 100% in its Big Horn Basin properties, which consist of approximately 24,510 gross (over 15,630 net) leasehold acres. Its properties in the Big Horn Basin produce approximately 6,110 MMcfe, of which over 87% is oil.
Arkoma Basin Properties
The Company's Arkoma Basin properties include properties in the Woodford Shale, located in eastern Oklahoma, the Fayetteville Shale, located in Arkansas, and royalty interests and non-operated working interest in both states. The Company's Arkoma Basin properties consist of approximately 398,630 gross (over 185,670 net) leasehold acres. The Arkoma Basin properties produce approximately 18,890 MMcfe, of which over 91% is natural gas. The properties have total proved reserves of approximately 246,010 MMcfe.
Williston Basin Properties
The Company's Williston Basin properties are located in North Dakota and Montana, which include the Horse Creek field, the Charlson Madison Unit and the Elk field. The Horse Creek field is located in Bowman County, North Dakota and has producing oil wells from various horizons in the Red River formation. The Charlson Madison Unit produces from the unitized Madison formation. The Elk field is operated and produces from wells in McKenzie County, North Dakota. Its Williston Basin properties consist of approximately 550,990 gross (over 71,960 net) leasehold acres. The properties produce approximately 3,050 MMcfe, of which over 93% is oil. Its Williston Basin properties have estimated proved reserves of over 27,270 MMcfe or 1% of its total estimated proved reserves.
Wind River Basin Properties
The Wind River Basin is located in central Wyoming. The Company's activities are primarily in the eastern Wind River Basin, along the Waltman Arch. Its natural gas production in this basin is gathered through its own gathering systems and delivered to markets through pipelines owned by Kinder Morgan Interstate and Colorado Interstate Gas (CIG). Its Wind River Basin properties consist of approximately 188,020 gross (over 156,990 net) leasehold acres. Its Wind River Basin properties produce approximately 3,040 MMcfe, of which over 96% is natural gas. The properties have total proved reserves of approximately 23,940 MMcfe or 1% of its total estimated proved reserves.
Powder River Basin Properties
The Powder River Basin is primarily located in northeastern Wyoming. The Company's development operations are conducted in its coalbed methane (CBM) fields. CBM wells are drilled to 1,500 feet on average, targeting the Big George Coals, typically producing water in a process called dewatering. Its natural gas production in this basin is gathered through gathering and pipeline systems owned by Fort Union Gas Gathering, LLC and Thunder Creek Gas Services, L.L.C. The Company's Powder River Basin properties consist of approximately 114,290 gross (over 66,870 net) leasehold acres. The properties produce approximately 7,550 MMcfe, which is over 100% natural gas. The properties have total proved reserves of approximately 15,830 MMcfe or 1% of its total estimated proved reserves.
Vanguard Natural Resources LLC
5847 San Felipe St Ste 3000
HOUSTON TX 77057-3399
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