HOUSTON, Nov. 30 (UPI) -- The exploitation of millions of barrels of oil from the Permian Basin in east Texas could begin by the end of the year, energy executives said.
Vanguard Natural Resources LLC on Monday announced it entered into an agreement with an unnamed private seller to purchase oil and gas assets in the Permian Basin in east Texas for $55 million.
The company said it expects the properties in the acquisition to hold proven reserves of more than 3.2 million barrels of oil equivalent. About 80 percent of that is in oil reserves.
"These assets are primarily oil production and with the hedges we contemplate putting in place upon closing the acquisition, this acquisition should be a major contributor to our cash flow next year and for several" more years, said Vanguard President and Chief Executive Officer Scott Smith.
Vanguard said it anticipates moving forward with operations in the Permian Basin shortly after closing the deal this month.