Encore Acquisition Buys Oil, Gas Assets
Monday, August 22nd 2005, 8:47 am
By: News On 6
FORT WORTH, Texas (AP) _ Encore Acquisition Co. on Monday said it is buying oil and gas properties located mostly in Oklahoma, Montana and North Dakota, from private sellers for about $123 million.
The company made two separate agreements to acquire the oil and gas interests and an energy company. The properties have estimated proven reserves of about 48 billion cubic feet of gas equivalent and current daily production of 10.5 million cubic feet equivalent.
The properties are expected to generate about $29 million of cash flow in 2006, and include 37,352 net acres of undeveloped leasehold.
Encore said the acquisitions are scheduled to be completed in September and October, and that it will fund the deals with its $450 million credit facility.