Vanguard Natural Resources LLC agreed to acquire natural gas properties in South Texas for $53.4 million in cash and stock from an affiliate of the Lewis Energy Group. The properties have estimated net proved reserves of 20 Bcfe, of which approximately 98% is natural gas and 65% is proved developed. Lewis will continue to operate the wells and the undeveloped portion of the properties, which Vanguard and Lewis will jointly develop. Upon closing, Vanguard will assume from Lewis natural gas swaps and collars based on Houston Ship Channel pricing for approximately 85% of the estimated gas production from existing producing wells for the period July 2008 through December 2011. Vanguard expects to finance the cash portion of the acquisition with borrowings under its existing credit facility. The transaction is scheduled to close before the end of July.

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