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Vanguard Natural Resources Bankruptcy Settlement Approved

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The U.S. Bankruptcy Court approved Vanguard Natural Resources’ emergency motion to enter into a settlement with Encana Oil & Gas (USA).

As previously reported, “Under the Settlement Agreement Vanguard will assign to Encana certain mineral interests to the Settlement Agreement (the ‘Transferred Interests’), which are located in Glasscock County, Texas, free and clear of all liens, claims and encumbrances, use commercially reasonable efforts to deliver releases of all liens and security interests that encumber wells drilled and leaseholder interests earned by Encana in Andrews County, Texas, and pay Encana $5 million upon the effective date of a chapter 11 plan for the Debtors. Vanguard and Encana will continue to perform their respective obligations to each other under the Joint Operating Agreements for the Glasscock and Andrews County operations.”

In addition, “These contested issues include, without limitation, Encana’s asserted property interests in all of Vanguard’s Glasscock County assets, not merely the Transferred Interests, Encana’s newly asserted administrative expense claim for $70 million, Encana’s appeal of the Court’s order authorizing the sale of undeveloped acreage in Glasscock County, and Encana’s objections to various provisions of the Debtors’ chapter 11 plan.”

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