Vanguard Natural Resources Announces Closing of South Texas Acquisition

Share Name	Share Symbol	Market	Type
Vanguard Natural Resources Llc (MM)	NASDAQ:VNR	NASDAQ	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.00	0.00%	0.20	0.193	0.195				0	01:00:00

Vanguard Natural Resources Llc (MM) (NASDAQ:VNR)
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HOUSTON, Aug. 18 /PRNewswire-FirstCall/ -- Vanguard Natural Resources, LLC (NYSE:VNR) ("Vanguard" or "Company") today announced it has closed its previously announced acquisition of certain producing natural gas and oil properties in South Texas from an affiliate of Lewis Energy Group, L.P. ("Lewis") for a purchase price of $52.25 million in cash. After preliminary purchase price adjustments based on an effective date of July 1, 2009, Vanguard paid $50.5 million in cash. The purchase price was funded from borrowings under our reserve-based credit facility and proceeds from the sale of 3.5 million common units completed on August 12, 2009. The properties acquired have total estimated proved reserves of 27 Bcfe as of July 1, 2009, of which 94% is natural gas and 70% is proved developed. Lewis will operate all of the wells acquired in this transaction. Based on the current net daily production of approximately 5,000 Mcfe, the properties have a reserve to production ratio of approximately 15 years. Mr. Scott W. Smith, President and CEO of Vanguard commented, "We are pleased to announce the closing of this transaction with Lewis, our South Texas operating partner. These properties exemplify the characteristics we are looking for when adding assets to our portfolio. They have a low decline rate, a long productive life, and have predictable operating costs. In addition, these properties will substantially increase our production and reserves and the value of the collateral backing our reserve-based credit facility." At closing, Vanguard assumed natural gas puts and swaps based on NYMEX pricing for approximately 61% of the estimated gas production from existing producing wells in the acquired properties for the period beginning August of 2009 through December 2010. In addition, concurrent with the execution of the purchase and sale agreement, Vanguard entered into a collar for certain volumes in 2010 and a series of collars for a substantial portion of the expected gas production for 2011 at a total cost to the Company of $3.1 million which was financed through deferred premiums. Inclusive of the hedges added, we expect that approximately 90% of the estimated gas production from existing producing wells in the acquired properties is hedged through 2011. A schedule of the hedges assumed and added is shown below: Hedging Schedule Period Volume (MMbtu) Hedge Pricing ($) ASSUMED: August-December 2009 765,000 (5,000/day) Put 8.00 2010 949,000 (2,600/day) Swap 7.50 ADDED: 2010 693,500 (1,900/day) Collar 7.50-8.50 2011 1,569,500 (4,300/day) Collar 7.31-8.31 (1) (1) Weighted Average Pricing About Vanguard Natural Resources, LLC Vanguard Natural Resources, LLC is a publicly traded limited liability company focused on the acquisition, production and development of natural gas and oil properties. The Company's assets consist primarily of producing and non-producing natural gas and oil reserves located in the southern portion of the Appalachian Basin, the Permian Basin, and South Texas. More information on the Company can be found at http://www.vnrllc.com/. Forward-Looking Statements This press release includes "forward-looking statements" within the meaning of the federal securities laws. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include but are not limited to statements about the acquisition announced in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to financial performance and results, availability of sufficient cash flow to pay distributions and execute our business plan, prices and demand for oil, natural gas and natural gas liquids, our ability to replace reserves and efficiently develop our current reserves and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the Securities and Exchange Commission. Please see "Risk Factors" in the Company's public filings. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to publicly correct or update any forward-looking statement, whether as a result of new information, future events or otherwise. CONTACT: Vanguard Natural Resources, LLC Investor Relations Richard Robert, EVP and CFO, 832-327-2258 DRG&E Jack Lascar/Carol Coale, 713-529-6600 DATASOURCE: Vanguard Natural Resources, LLC CONTACT: Investor Relations, Richard Robert, EVP and CFO of Vanguard Natural Resources, LLC, +1-832-327-2258, ; or Jack Lascar, or Carol Coale, both of DRG&E, +1-713-529-6600, for Vanguard Natural Resources, LLC Web Site: http://www.vnrllc.com/

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VNR Vanguard Natural Resources Llc (MM)