Encore Acquires Big Horn Basin Acreage from Anadarko
Encore Acquisition Co. said that its subsidiaries have completed their acquisition of oil properties in the Big Horn Basin from subsidiaries of Anadarko Petroleum Corp. Encore had announced the deal in January.
Encore also has entered into a new five-year, $1.25 billion senior secured credit facility with an initial borrowing base of $650 million that matures on March 7, 2012 under which Bank of America will serve as administrative agent. The facility replaces Encore's previous $750 million credit facility, which had a $550 million borrowing base and would have matured in December 2010. The new credit facility is secured by a first-priority lien on certain of the Company's proved oil and natural gas reserves.
In addition, one of the Company's subsidiaries entered into a new five-year, $300 million senior secured credit facility with an initial borrowing base of $115 million that matures on March 7, 2012 under which Bank of America will serve as administrative agent. The new credit facility is secured by a first-priority lien on the subsidiary's proved oil and natural gas reserves and contains a $10 million overadvance feature.
Encore Acquisition Company is engaged in the development of onshore North American oil and natural gas reserves. Since 1998, Encore has acquired high-quality assets and grown them through drilling, waterflood, and tertiary projects. Encore's properties are located in the Rockies, the Mid-Continent, and the Permian Basin.
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Company: Encore Acquisition Company more info
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