-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VQW4hiyzfhwI6+ow2R2FWPVGLimtOhua2pVF+Vof0HPOMCgOhUiUsQY8HF/lP8IL jqIcVezP0zaaUebgfDuidg== 0000950134-07-001330.txt : 20070126 0000950134-07-001330.hdr.sgml : 20070126 20070125195653 ACCESSION NUMBER: 0000950134-07-001330 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070125 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070126 DATE AS OF CHANGE: 20070125 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENCORE ACQUISITION CO CENTRAL INDEX KEY: 0001125057 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 752759650 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16295 FILM NUMBER: 07554394 BUSINESS ADDRESS: STREET 1: 777 MAIN STREET, SUITE 1400 CITY: FORT WORTH STATE: TX ZIP: 76102 BUSINESS PHONE: 8178779955 8-K 1 d43034e8vk.htm FORM 8-K e8vk
 

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 25, 2007
ENCORE ACQUISITION COMPANY
(Exact name of registrant as specified in its charter)
         
Delaware   001-16295   75-2759650
(State or other jurisdiction   (Commission   (IRS Employer
of incorporation)   File Number)   Identification No.)
         
777 Main Street, Suite 1400, Fort Worth, Texas
  76102
(Address of principal executive offices)
  (Zip Code)
Registrant’s telephone number, including area code: (817) 877-9955
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


 

Item 7.01       Regulation FD Disclosure
     On January 25, 2007, Encore Acquisition Company, a Delaware corporation (“Encore”), issued a press release announcing its 2006 production and estimated proved oil and natural gas reserves as of December 31, 2006. A copy of the press release is attached as Exhibit 99.1 and is furnished herewith.
     The information being furnished pursuant to Item 7.01 of this Form 8-K and in Exhibit 99.1 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01      Financial Statements and Exhibits
     (d) Exhibits
         The exhibit listed below is being furnished pursuant to Item 7.01 of this Form 8-K:
     
99.1
  Press Release Dated January 25, 2007 regarding year-end reserves

 


 

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  ENCORE ACQUISITION COMPANY
 
 
Date: January 25, 2007  By:   /s/ Robert C. Reeves    
    Robert C. Reeves   
    Senior Vice President, Chief Financial Officer,
and Treasurer 
 
 

 


 

INDEX TO EXHIBITS
     
Exhibit No.   Description
 
   
99.1
  Press Release Dated January 25, 2007 regarding year-end reserves

 

EX-99.1 2 d43034exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1
Encore Acquisition Company Announces Year-End Reserves Replacement of 179%
FORT WORTH, Texas—(BUSINESS WIRE)—January 25, 2007
Encore Acquisition Company (NYSE:EAC) today announced that estimated proved oil and natural gas reserves increased by 5% to 205 million barrels of oil equivalent (“BOE”) as of December 31, 2006. Oil reserves accounted for 75% of total proved reserves, and 65% of total proved reserves are developed. Market prices used in the year-end reserve estimate were $61.06 per barrel for oil and $5.48 per Mcf for natural gas. Based on fourth quarter 2006 production of 30,704 BOE per day, Encore’s ratio of reserves to production is approximately 18 years for total proved reserves and 12 years for proved developed reserves.
During 2006, Encore replaced 179% of the 11.2 million BOE it produced. Based on total expected capital expenditures for 2006 of approximately $379 million, these reserve volumes imply an all-in finding and development cost for the year, including acquisitions, of approximately $18.85 per BOE.
         
Summary of Changes in Proved Reserves   MMBOE  
Reserves at December 31, 2005
    195.7  
Acquisitions & development, net of revisions
    20.1  
Production
    (11.2 )
 
     
Reserves at December 31, 2006
    204.6  
 
     
Encore’s proved reserve estimates for 100% of its properties were prepared by Miller and Lents, Ltd., independent petroleum engineers. Reserve replacement was calculated by dividing the sum of reserve extensions, discoveries, improved recovery, acquisitions, and revisions by annualized fourth quarter production. All-in finding and development cost was calculated by dividing the sum of development, exploration, and acquisition costs by the sum of reserve extensions, discoveries, improved recovery, acquisitions, and revisions. Consistent with industry practice, future capital costs to develop proved undeveloped reserves were not included in the calculation of costs incurred.
About the Company:
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.
Cautionary Statement:
This press release includes forward-looking statements, which give Encore’s current expectations or forecasts of future events based on currently available information. Forward-looking statements in this press release relate to, among other things, the estimates of proved reserves, reserve life and any other statements that are not historical facts. The assumptions of management and the future performance of Encore are subject

 


 

to a wide range of business risks and uncertainties and there is no assurance that these statements and projections will be met. Factors that could affect Encore’s business include, but are not limited to: the risks associated with drilling of oil and natural gas wells; Encore’s ability to find, acquire, market, develop, and produce new properties; the risk of drilling dry holes; oil and natural gas price volatility; hedging arrangements (including the costs associated therewith); uncertainties in the estimation of proved, probable and potential reserves and in the projection of future rates of production and reserve growth; inaccuracies in Encore’s assumptions regarding items of income and expense and the level of capital expenditures; uncertainties in the timing of exploitation expenditures; operating hazards attendant to the oil and natural gas business; risks related to Encore’s high-pressure air program; drilling and completion losses that are generally not recoverable from third parties or insurance; potential mechanical failure or underperformance of significant wells; climatic conditions; availability and cost of material and equipment; the risks associated with operating in a limited number of geographic areas; actions or inactions of third-party operators of Encore’s properties; Encore’s ability to find and retain skilled personnel; diversion of management’s attention from existing operations while pursuing acquisitions or joint ventures; availability of capital; the strength and financial resources of Encore’s competitors; regulatory developments; environmental risks; general economic and business conditions; industry trends; and other factors detailed in Encore’s most recent Form 10-K and other filings with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Encore undertakes no obligation to publicly update or revise any forward-looking statements.
Contact:
Encore Acquisition Company, Fort Worth
Bob Reeves, Chief Financial Officer
817-339-0918
rcreeves@encoreacq.com

 

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