Vanguard Natural Resources LLC (NASDAQ: VNR) acquired assets in North Louisiana and East Texas for $278 million from Hunt Oil Co., the company said Aug. 4.

The natural gas, NGL and oil assets are on properties of about 23,000 net acres, Vanguard said, adding that they currently produce about 17.5 million cubic feet equivalent per day (MMcfe/d). Of that amount, about 67% is natural gas and 33% is oil and NGL, the company noted.

The acquisition, scheduled to close Oct. 1, has an effective date of June 1, Vanguard said.

It will be funded through reserve-based credit facility borrowings, the company added.

“This acquisition of mature, long-life natural gas and oil properties is an excellent addition to our current portfolio of assets. Along with an established base of producing assets, this acquisition features an inventory of behind pipe and low-risk vertical drilling projects that we will begin to develop in 2015,” said Scott W. Smith, president and CEO.

“In addition, based on our initial evaluation work, we believe there is the potential for meaningful horizontal drilling opportunities across some of the operated assets. With this transaction, we have established another core area from which we can continue to build upon in the future,” he added.

The company has a working interest in more than 290 producing wells and 78 proved undeveloped vertical drilling locations, Vanguard said, noting that it forecast lease operating expenses at about $1/Mcfe over the next three years, and that it will hedge production.

Dallas-based Hunt Oil Co. operates worldwide.

Houston-based Vanguard Natural Resources LLC acquires, develops and produces domestic oil and natural gas properties.