Acquisition opportunities like this do not happen very often, so when they become available you must be ready. Purchasing long-life properties at a time when prices are below long-term marginal costs has been a tried and true strategy Encore has been practicing for the past 11 years. Brumley, Encore's Chief Executive Officer and President, stated, 'This acquisition is vintage Encore. All of the reserves are proved developed producing. Gladewater's estimated proved developed reserves are approximately 10.3 million BOE, 95 percent of which are natural gas. The East Texas properties include 495 gross wells with forecasted production of approximately 17.3 million cubic feet equivalent of natural gas per day. This field produces primarily from the Cotton Valley Sands. The East Texas properties include long-life assets mainly in the Gladewater field. The Norge Marchand reserves represent approximately 63 percent of the Mid-Continent package. The Mid-Continent package has estimated proved developed reserves of approximately 12.8 million BOE, 50 percent of which are oil and natural gas liquids and 100 percent of which are proved developed producing. The acquired properties also include assets in the Texas Panhandle, southwestern Kansas, and western Oklahoma.

Encore's internal engineers have forecasted production from this large field as of the anticipated closing date.įorecasted production is 1,955 barrels of oil equivalent ('BOE') per day, and the field is 100 percent operated. The Norge Marchand Unit is a waterflood that produces from the Marchand Sandstone and has estimated original oil in place of 200 million barrels.

The Mid-Continent properties are comprised of oil and natural gas assets primarily located in the Norge Marchand Unit in Grady County, Oklahoma. and an affiliate, EXCO Operating Company, LP to acquire oil and natural gas properties in the Mid-Continent and East Texas for $375 million in cash, subject to customary purchase price adjustments and closing conditions.

Encore has entered into definitive agreements with EXCO Resources, Inc.

Encore energy partners lp