investors, page-61

Taken from:
http://www.naturalgasstocks.com/News/072108a.asp






Vanguard Natural Resources Signs Definitive Agreement to Acquire Oil and Gas Properties in South Texas.



HOUSTON--July 21 2008 --Vanguard Natural Resources, LLC (NYSE Arca:VNR) ("Vanguard" or "Company") today announced it has signed a definitive agreement to acquire natural gas properties in South Texas for $53.4 million ($32.04 million in cash and $21.36 million of equivalent VNR units) from an affiliate of the Lewis Energy Group (“Lewis”). The properties to be acquired have total estimated net proved reserves of 20 Bcfe as of June 1, 2008, of which approximately 98% is natural gas and 65% is proved developed. These reserves have a 1,150 Btu content. Lewis will continue to operate all of the wells acquired in this transaction and will continue to operate the undeveloped portion of the properties, which Vanguard and Lewis will jointly develop. Based on the current net daily production of approximately 3,000 Mcf the properties have a reserve to production ratio of approximately 18 years. This transaction is scheduled to close before the end of July and is subject to customary closing conditions and certain preferential rights to purchase applicable to the properties.

Upon closing, Vanguard will assume from Lewis natural gas swaps and collars based on Houston Ship Channel pricing for approximately 85% of the estimated gas production from existing producing wells for the period beginning July 2008 through December 2011. A schedule of the hedges to be acquired in this transaction is shown below. Vanguard expects to finance the cash portion of the acquisition with borrowings under its existing credit facility.

“This transaction will accomplish many things for the Company,” commented Scott W. Smith, President and CEO of Vanguard. “We expect to increase our daily gas production approximately 27% while at the same time forging a strategic relationship with Lewis Energy Group, the largest producer of natural gas in the Olmos trend with over 67,000 mcf/d of production and over 325,000 acres under lease in Webb and surrounding counties. Lewis operates over 1,050 producing wells and consistently drills 100-125 wells per year in this trend. We are looking forward to participating in the drilling of our multi-year inventory of proved undeveloped locations with the Lewis team who are unquestionably the experts in the development of this prolific natural gas trend in South Texas.”

Rodney R. Lewis, President and CEO of Lewis Energy Group, stated, “We are very excited about joining forces with Vanguard, a company that excels at evaluating and owning long-life reserves, and participating with them in the future development of proved undeveloped reserves associated with the subject properties. We look forward to a long and prosperous relationship.” Alfred G. Holcomb, who managed this transaction as VP of Special Projects for Lewis Energy Group, added, “This transaction provides strategic advantages for both parties; Lewis’s confidence in Vanguard and its management team is illustrated by its desire to take a large portion of the purchase price in VNR units.”

After closing, management will review with the Board of Directors the impact of this acquisition on distributable cash flows and anticipates recommending an increase in the quarterly distribution rate beginning with the distribution for the third quarter of 2008, which is payable in November of 2008.



About Vanguard Natural Resources, LLC

Vanguard Natural Resources, LLC is a publicly-traded, limited liability company focused on acquiring, producing and developing oil and natural gas properties. Vanguard’s assets consist primarily of producing and non-producing natural gas and oil reserves located in the southern portion of the Appalachian Basin and the Permian Basin.





For more information, please contact :

Vanguard Natural Resources, LLC
Investor Relations
Richard Robert, EVP and CFO, 832-327-2258
[email protected]


Taken from: http://www.naturalgasstocks.com/News/072108a.asp

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Do the math on MAES value with regards to its reserve value only (excluding infrastructure, acreage and Hardware)
if: 20BillionCFeet of Natural gas is buyable at
US$53million, where would we stand in a buyout?

Roughyl, what would our value be for say 400Billion Cubic Feet?

Maybe 20 x 20bcf.....or 20 x US53million.....
Which would be over 1Billion Dollars.



Divide $1Billion by the amount of MAE shares on offer

(crude valuation) would equal approx. 316,336,046 shares on issue...

= approximately $3-16 per share value.



So we are in the money if/when it all happens, especially if we are at around 1 trillion cubic feet of gas!
(which would be a crude value of approx. $7-50 per share.



I know this is a far cry from our current shareprice, but these numbers are realistically calculated on a) our current reserve probability and b) an arbitrary figure that we may well be able to acheive. Even if we only acheive around 500bcf, that would still give us a value of around $3-75 per share and we are already very close to that with our current reserve of 319billion cubic feet.


In addition to this value, we also have to add approximately 15% for the US v's AUDollar difference.

Something to get excited about IMO!!








Cheers.