2011-06-30-2011-06-23

To buy assets in W TX Permian Basin, gaining 500 BOE/d, 2.74 MMBOE proved.

Encore Energy Partners LP, Houston, (NYSE: ENP) and Vanguard Natural Resources LLC, Houston, (NYSE: VNR) plan to acquire 100% interest in producing oil and gas assets in the Permian Basin of West Texas from an undisclosed private seller for $42.5 million.

Encore Energy Partners and Vanguard will each acquire 50% undivided interest in the properties. Vanguard is the general partner of Encore Energy Partners.

The interests to be acquired by Encore Energy Partners are 100% proved developed. Net production at closing is expected to be approximately 500 barrels of oil equivalent per day. Net proved reserves are 2.74 million barrels equivalent (70% oil and gas liquids).

Vanguard acquired 46% of Encore Energy Partners' outstanding stock plus 100% interest in its general partner interestfrom Denbury Resources Inc., Plano, Texas, (NYSE: DNR) for $393 million in January.

"This acquisition is an excellent MLP type asset and is a great addition to our Permian Basin portfolio," says Encore Energy president and CEO Scott W. Smith. "This acquisition was done jointly with Vanguard Natural Resources LLC pursuant to the business opportunity policy in place between the two companies. These assets are expected to generate very stable cash flows and production for the next several years."

The deal is expected to close by Aug. 1. The effective date is May 1.