These assets, which are being purchased from a private seller, have estimated total net proved reserves of 2.74 million barrels of oil equivalent, of which about 70% are oil and natural gas liquids reserves.
At closing of the transaction, net production to the company attributable to the assets will be approximately 500boe/d.
The properties are 100% proved developed and the acquisition is expected to be closed by 1 August 2011.
Vanguard Natural Resources, the general partner of Encore Energy, will acquire the remaining 50% interest in the Permian Basin assets.
