Encore Acquisition announced that it has completed the acquisition of oil and natural gas properties in the Williston Basin from subsidiaries of Anadarko Petroleum Corp. for $410 million.
The Fort Worth-based producer said it funded the purchase with borrowings under its five-year, $1.25 billion senior secured credit facility, which currently has a borrowing base of $950 million that matures on March 7, 2012. Encore Acquisition first disclosed this transaction with Anadarko subsidiaries in January (see Daily GPI, Jan. 29).
Earlier that month, Encore Acquisition entered into an agreement with Anadarko to acquire its interests -- most of which are oil -- in the Elk Basin and Gooseberry area, primarily located in Park County, WY, for another $400 million (see Daily GPI, Jan. 18).
This is the latest in a string of oil and gas properties that the company has acquired since 1999. It has picked up assets from Kerr-McGee Corp., ConocoPhillips, Richardson Production Co., Pioneer Natural Resources Inc., Burlington Resources Oil & Gas Co., XTO Energy Inc. and Shell Western E&P and Shell Onshore Ventures Inc.
Encore Acquisition's production and reserves have grown steadily since 1999. The company pegged its production at the end of 2006 at 30,820 boe/d, a 22% increase over 8,553 boe/d in 1999. It reported that oil accounts for about two-thirds of its total production. The company estimated its oil and gas reserves at 196 MMboe in 2005, up 18% from 71 MMboe in 1999.
The producer's oil and gas properties are concentrated in three areas in the United States -- the Rocky Mountains, Permian Basin and Midcontinent region.
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