Vanguard Natural Resources, LLC says that on December 31, 2010 it closed its previously announced acquisition of the general partner interest and certain limited partner interests in Encore Energy Partners, LP from Denbury Resources Inc.'s for $300 million in cash and the issuance of approximately 3.14 million Vanguard common units to Denbury. Vanguard owns ENP's general partner and 20,924,055 ENP common units, or approximately 46% of ENP's outstanding common units. The cash portion of the purchase price was funded from borrowings under Vanguard's senior secured credit facility and a $175 million acquisition term loan.

Mr. Scott W. Smith, President and CEO of Vanguard commented, "With this acquisition we are acquiring a great set of assets in a structure where we have a proven track record of growth, both in terms of production and distributions. This transaction expands our presence in the Permian Basin and establishes a base from which to grow in the Big Horn and Williston Basins. We are confident that over time the benefits from this acquisition will be substantial and will allow us to continue to achieve our strategic objectives on an accretive basis."

ENP's estimated proved reserves as of September 30, 2010 are 91% proved developed and total approximately 43.4 million barrels of oil equivalent (MMBoe) and are comprised of approximately 67% crude oil and NGLs and 33% natural gas. The properties are characterized by long-lived, predictable production profiles with low decline rates and have a reserve to production ratio of approximately 14 years.

Tags: EnCore Oil plc, Vanguard Natural Resources