Encore Energy Partners LP Acquires Permian Basin Oil and Gas Properties and Agrees to Purchase Wyoming Gas Property for $14.8M

Encore Energy Partners LP ENP today announced it 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.