Encore Acquisition Company announced that its Board of Directors has authorized the Company's management team to explore a broad range of strategic alternatives to further enhance shareholder value, including, but not limited to, a sale or merger of the Company. Lehman Brothers Inc. has been engaged as the Company's financial advisor in this process.
Jon S. Brumley, Chief Executive Officer and President, commented, "Since Encore's formation in 1998, the Company has built a high quality portfolio of stable long-lived, oil-weighted properties that generate substantial free cash flow from our 231 MMBOE proved reserve base. We have a vast inventory of over 2,500 drilling locations and 35 enhanced oil recovery projects that represent more than 450 MMBOE of additional upside potential. Encore has sizeable and scalable projects in some of the most significant onshore domestic oil and natural gas plays which include the Bakken Shale play, the Haynesville Shale play, our West Texas joint venture with ExxonMobil, our Rocky Mountain CO2 opportunities, and our newest oil shale play, the Tuscaloosa Marine Shale."
Mr. Brumley went on to state, "It is our belief that Encore's current share price is not reflective of our record operating results and our ability to efficiently fund these projects through our upstream MLP, Encore Energy Partners. We are determined to have the value of these opportunities recognized for our shareholders. Therefore we have retained Lehman Brothers to explore strategic alternatives, including a sale of the Company."
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