Grizzly Energy (GRZZP) 8-K/A Statement of Combined Revenues and Direct Operating Expenses

Exhibit 99.2

Vanguard Natural Resources, LLC and Subsidiaries

Unaudited Pro Forma Consolidated Balance Sheet

The Company acquired certain producing and non-producing oil and gas properties and related assets and liabilities from Lewis on July 28, 2008.  The following pro forma consolidated balance sheet has been prepared to reflect the acquisition as if it occurred on June 30, 2008.  Pro forma statements of operations have not been provided as the use of forward-looking information would be necessary to meaningfully present the effects of the acquisition.  This unaudited pro forma balance sheet has been prepared for comparative purposes only and may not reflect what would have occurred if the Company had completed the acquisition at an earlier date.This pro forma balance sheet should be read in conjunction with the audited December 31, 2007 and unaudited June 30, 2008 consolidated financial statements of Vanguard Natural Resources, LLC.

Vanguard Natural Resources, LLC and Subsidiaries

Unaudited Pro Forma Consolidated Balance Sheet

As of June 30,

	Vanguard Historical			Pro Forma			Vanguard Pro Forma As Adjusted
	2008			Adjustments			2008
Assets
Current assets
Cash and cash equivalents	$	3,900,503		$	—		$	3,900,503
Trade accounts receivable, net		10,825,985						10,825,985
Derivative assets		—				(a)		1,963,816
Other currents assets		719,273						719,273
Total current assets		15,445,761			1,963,816			17,409,577
Property and equipment
Furniture and fixtures		109,594						109,594
Machinery and equipment		163,677						163,677
Less: accumulated depreciation		(70,234	)					(70,234	)
Total property and equipment		203,037			—			203,037
Natural gas and oil properties, net – full cost method		184,705,095			51,365,940	(a)		233,296,185
				(3,595,687)		(a)
					820,837	(a)
Other assets
Derivative assets		702,079			1,631,871	(a)		2,333,950
Deferred financing costs		973,191						973,191
Non-current deposits		45,963						45,963
Other assets		1,061,309						1,061,309
Total assets	$	203,136,435		$	52,186,777		$	255,323,212
Liabilities and members’ equity
Current liabilities
Accounts payable – trade	$	947,507		$	—		$	947,507
Accounts payable – natural gas and oil		1,034,750						1,034,750
Payables to affiliates		4,161,308						4,161,308
Derivative liabilities		27,109,030						27,109,030
Accrued expenses		3,435,907						3,435,907
Total current liabilities		36,688,502			—			36,688,502
Long-term debt		102,500,000			30,005,940	(b)		132,505,940
Derivative liabilities		47,582,633						47,582,633
Asset retirement obligations		1,532,881			820,837	(a)		2,353,718
Total liabilities		188,304,016			30,826,777			219,130,793
Commitments and contingencies
Members’ equity
Members’ capital, 10,795,000 pre-acquisition and 12,145,873 post-aquisition common units issued and outstanding at June 30, 2008		19,220,375			21,360,000	(a)		40,580,375
Class B units, 420,000 issued and outstanding at June 30, 2008		3,495,153						3,495,153
Other comprehensive loss		(7,883,109	)					(7,883,109	)
Total members’ equity		14,832,419			21,360,000			36,192,419
Total liabilities and members’ equity	$	203,136,435		$	52,186,777		$	255,323,212

See notes to unaudited pro forma consolidated balance sheet

Vanguard Natural Resources, LLC and Subsidiaries

Notes to Unaudited Pro Forma Consolidated Balance Sheet

(a)   To record the acquisition of certain producing and non-producing oil and gas properties and related assets and liabilities from Lewis.  Total cash consideration of $30.0 million (after consideration of preliminary purchase price adjustments of approximately $2.0 million) and VNR stock consideration of  $21.4 million (1,350,873 units at $15.81) plus assumption of natural gas swap and collar derivative contracts for gas production from July 2008 through December 2011 ($3.6 million asset) and asset retirement obligation ($0.8 million liability).

(b)   To record the financing of the cash portion of the acquisition with borrowings from the Company’s reserve-based credit facility.