Encore Acquisition to draw on revolver for purchase of EXCO assets

By Sara Rosenberg

New York, June 29 - Encore Acquisition Co. plans to use borrowings under its revolving credit facility, along with proceeds from asset sales, to fund the $375 million acquisition of oil and natural gas properties from EXCO Resources Inc., according to a news release.

The company is selling certain properties in the Rockies and Permian Basin to Encore Energy Partners LP for $190 million in cash and it is those proceeds that will be used to help fund the purchase of the EXCO assets.

The EXCO assets to be bought include oil and natural gas properties primarily located in the Norge Marchand Unit in Grady County, Okla., and properties located in East Texas.

The acquisition is expected to close in August and will be effective as of April 1.

Encore is a Fort Worth, Texas-based acquirer and developer of oil and natural gas reserves from onshore fields.

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