Encore Acquisition Company has entered into definitive agreements with EXCO Resources, Inc. and an affiliate, EXCO Operating Company, LP to acquire oil and natural gas properties in the Mid-Continent and East Texas for $375 million in cash, subject to customary purchase price adjustments and closing conditions.

The Mid-Continent properties are comprised of oil and natural gas assets primarily located in the Norge Marchand Unit in Grady County, Oklahoma. The Norge Marchand Unit is a waterflood that produces from the Marchand Sandstone and has estimated original oil in place of 200 million barrels. Encore's internal engineers have forecasted production from this large field as of the anticipated closing date. Forecasted production is 1,955 barrels of oil equivalent ("BOE") per day, and the field is 100 percent operated. The acquired properties also include assets in the Texas Panhandle, southwestern Kansas, and western Oklahoma. The Mid-Continent package has estimated proved developed reserves of approximately 12.8 million BOE, 50 percent of which are oil and natural gas liquids and 100 percent of which are proved developed producing.

The Norge Marchand reserves represent approximately 63 percent of the Mid-Continent package.

Tags: Encore Acquisition Company