Encore Energy Partners LP(ENP) closed on an acquisition of producing oil and natural gas assets in the Permian Basin of West Texas for a net price of $14.8 million from a private seller. The properties have estimated total net proved reserves of 1.03 million boe, of which 87% are oil and natural gas liquids (NGL). They are 51% proved developed, and current production is about 115 Boe/d. The effective date of the acquisition was May 1, 2011. ENP also said it agreed to acquire certain nonoperated working interests in producing oil and natural gas assets in Sweetwater County, WY, from an undisclosed seller for $28.5 million. The assets have estimated total proved reserves of 4.175 million boe, of which 65% are natural gas and 35% are oil and NGLs. They are 90% proved developed, and net production attributable to the acquisition is 880 boe/d. Closing is expected in September with an effective date of June 1, 2011. ENP said it made new oil and gas hedges covering a substantial portion of the estimated production related to proved developed reserves from both acquisitions for the next several years.
Articles from Encore
After picking up 22.5 cents on Monday to break the $5 psychological resistance price level, the July natural gas futures contract added another 18.3 cents as an encore on Tuesday to close at $5.189. The move puts resistance tests at $5.250 and $5.500 now well within the realm of possibility.
Ivan was back for an encore performance in the Gulf of Mexico production area as a tropical storm, but spot prices responded more to weak fundamental demand Thursday as they ranged a few cents to either side of flat in the Gulf Coast and Northeast but were flat to down about 15 cents in the Midcontinent/Midwest and West.
There was no encore performance by bulls. Following a four-day, 41-cent rally off Monday’s lows, natural gas futures eked out a small advance in quiet trading Friday. The September contract, which will expire Wednesday, was held to an extremely tight 5.5-cent trading range. It settled at $5.28, up 0.5 cents for the session and within striking distance of Thursday’s new one-month high at $5.34.