Encore Energy purchases oil, gas producing properties in West Texas' Permian Basin

Source: Encore Energy

Encore Energy Partners LP (NYSE:ENP) has closed on the acquisition of producing oil and natural gas assets in the Permian Basin of West Texas for a net purchase price of $14.8 million from a private seller. 

The properties acquired by ENP have estimated total net proved reserves of 1.03 million barrels of oil equivalent, of which approximately 87% are oil and natural gas liquids reserves. The properties being acquired are 51% proved developed and the current production is approximately 115 Boe/d. The effective date of the acquisition was May 1, 2011. 

In addition, ENP has entered into a definitive agreement to acquire certain non-operated working interests in producing oil and natural gas assets in Sweetwater County, Wyoming from an undisclosed seller for a purchase price of $28.5 million. The assets to be acquired have estimated total proved reserves of 4.175 million barrels of oil equivalent, of which approximately 65% are natural gas reserves and 35% are oil and natural gas liquids reserves. The assets are 90% proved developed and the net production attributable to the assets being acquired is approximately 880 Boe/d. Closing of this acquisition is expected in September but the effective date of this acquisition is June 1, 2011. 

In conjunction with these acquisitions, ENP has entered into new oil and natural gas hedges covering a substantial portion of the estimated production related to proved developed reserves from these acquisitions for the next several years.

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