Vanguard Natural Resources has completed the divestment of its interest in certain Arkoma Basin assets in Arkansas and Oklahoma, US, to strengthen its balance sheet.
The $22.9m sale includes natural gas properties and associated midstream assets in the Potato Hills field, with around 5,500Mcf a day of production.
The development comes after the company recently closed two additional transactions, including non-operated working interests in more than 145 wells in multiple counties in Texas and Louisiana for total gross proceeds of $5.5m.
Vanguard is also in the process of marketing its Arkoma basin properties in Arkansas, which includes all of its interests located within the state.
The proposed sale comprises operated and non-operated working interests, with current production of around 8MMcfe a day, as well as related development rights.
Continuing with its divestment spree, the company has also started marketing its stake in five producing wells and associated undeveloped acreage in the DJ Basin in Weld County, Colorado.
In a statement, Vanguard Natural Resources said: “The company continues to progress other non-core asset sale processes and is actively preparing additional assets for potential divestment, including certain assets in the Midcontinent and the Gulf Coast areas.”
The company will use net proceeds from the sales to further cut debt under its revolving credit facility.
Vanguard’s asset base comprises oil and natural gas reserves located in multiple basins, including the Green River Basin in Wyoming, the Piceance Basin in Colorado, the Permian Basin in West Texas and New Mexico, the Big Horn Basin in Wyoming and Montana, and the Wind River Basin in Wyoming.
Last month, the company sold certain assets in the Permian Basin, Green River Basin, and Mississippi, with a combined current production of about 17MMcfe a day, raking in more than $60m in sale proceeds.
Last month, Vanguard Natural Resources president and CEO Scott Sloan said: “Our guiding principles during this ongoing divestment process are to focus our portfolio and to strengthen our balance sheet.
“Collectively, these principles will enhance the long-term value of the company by positioning the company to be a successful exploration and production company.”
