Encore Acquisition shareholder opposes review of strategic alternatives

By Lisa Kerner

Charlotte, N.C., June 4 - Las Colinas Capital Management, LLC's Robert J. Kecseg called Encore Acquisition Co.'s decision to consider strategic alternatives, including a sale of the company, "ill advised" and not in shareholders' best interests.

On May 22, Encore announced it would explore a range of alternatives with the assistance of Lehman Brothers Inc.

Kecseg noted in a Las Colinas news release that Encore has yet to report drilling results to its shareholders from a well drilled in the Tuscaloosa Marine Shale on May 8.

Encore plans to drill 300 to 600 wells on the property, indicating "potentially a large oil resource play," according to the shareholder's release.

"By not continuing the process of evaluating the Tuscaloosa Marine Shale play, utilizing the very same technology which has made the company enormously successful in the recent past, we believe that Encore is leaving money on the table," Kecseg said in the release.

"As shareholders, we believe the company has a fiduciary responsibility to further develop the property in order to know exactly what we own," Kecseg added.

Encore is a Fort Worth, Texas, developer of onshore North American oil and natural gas reserves.

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