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Company Links |
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Business Environment |
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The Big Horn Basin is formed by the Big Horn Mountains to the east, the Absaroka Mountains to the west, the Owl Creek Mountains to the south and the Ny-Bowler Lineament to the north. The Big Horn Basin is located in Park County, Wyoming and Carbon County in Montana.
The Big Horn Basin is characterized by oil and natural gas fields with long production histories and multiple producing formations. The Big Horn Basin is a prolific basin and has produced over 1.8 billion Bbls of oil since its discovery in 1906.
The Permian Basin is one of the largest and most prolific oil and natural gas producing basins in the United States. The Permian Basin extends over 100,000 square miles in West Texas and southeast New Mexico and has produced over 24 billion Bbls of oil since its discovery in 1921.
The Permian Basin is characterized by oil and natural gas fields with long production histories and multiple producing formations.
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Company Strategy |
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The Company is a growth-oriented Delaware limited partnership formed on February 13, 2007 by Encore Acquisition Company to acquire, exploit and develop oil and natural gas properties and to acquire, own and operate related assets. |
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Product/Services Portfolio |
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All of the Company’s properties are located in the Big Horn Basin of Wyoming and Montana and the Permian Basin of West Texas, which are mature producing regions with well known geologic characteristics. These properties are located within fields that exhibit long-lived production. Most of the Company’s properties have been producing for more than 32 years, and one field has been producing continuously for more than 62 years.
The Company operates 118 gross wells that produce from the Embar-Tensleep formation in the Elk Basin field. These wells are drilled to a depth of 4,200 to 5,400 feet.
The Company operates 187 wells that produce from the Madison formation in the Elk Basin field. These wells are drilled to a depth of 4,800 to 5,800 feet.
The Company operates 4 wells that produce from the Frontier formation in the Elk Basin field. These wells are typically drilled to a depth of 1,600 to 2,900 feet.
The Company also operates wells in the Big Horn, Embar-Tensleep and Madison formations in the Northwest Elk Basin field and in the Embar-Tensleep, Middle Frontier, Torchlight and Peay Sand formations in the South Elk Basin field.
The Company operates and owns a 62% interest in the Elk Basin natural gas processing plant near Powell, Wyoming, which was first placed into operation in the 1940s.
The Company owns and operates one crude oil pipeline system and two natural gas gathering pipeline systems.
The Company operates 50 gross wells in the Angus and Henderson fields in the Ozona area in Crockett County, Texas. The wells are typically drilled to a depth of approximately 8,000 feet. These wells produce from the Canyon Sand formation. The Canyon Sand produces from several sands over a gross interval of 400 to 500 feet. The wells have been drilled to the allowable 40-acre spacing.
The Company owns non-operated interests in the Davidson Ranch, Hunt-Baggett, Live Oak Draw and Ozona fields in Crockett County, Texas.
These wells produce from the Canyon Sand and Strawn formations at depths of 8,000 to 9,000 feet. The Canyon Sand produces from several sands over a gross interval of 400 to 500 feet. Many of the wells were not completed in all of the known producing intervals. The Company has identified 1,423 MBOE of proved non-producing reserves in these wells.
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Investment Analysis |
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Oil revenues increased $20.3 million from $0.2 million in the first six months of 2006 to $20.5 million in the first six months of 2007.
Natural gas revenues decreased $0.8 million from $6.7 million in the first six months of 2006 to $5.9 million in the first six months of 2007.
Total production expenses increased $6.8 million from $1.4 million in the first six months of 2006 to $8.2 million in the first six months of 2007.
The production expense attributable to lease operations expense (“LOE”) for the first six months of 2007 increased $4.2 million from $0.8 million in the first six months of 2006 to $5.0 million in the first six months of 2007.
Interest expense was $6.4 million during the first six months of 2007. The Company did not have any interest expense during the first six months of 2006.
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Income Data (Thousand $ Except EPS) |
| Year |
Revenues |
Costs |
Oper Income |
Taxes |
Net Income |
EPS |
| 2004
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13,233 |
4,872 |
0.00 |
0.00 |
8,361 |
0.00 |
| 2005
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16,901 |
5,345 |
0.00 |
0.00 |
11,556 |
0.00 |
| 2006
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12,746 |
4,976 |
0.00 |
0.00 |
7,648 |
0.00 |
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Balance Sheet Data
(Thousand $) |
Year |
Cash |
Acct Recv. |
Inventory |
Total Cur Assets |
Total Cur Liability |
PPE |
Total Assets |
LT Debt |
SH Equity |
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2005 |
0.00 |
4,419 |
0.00 |
0.00 |
914 |
24,714 |
29,133 |
0.00 |
0.00 |
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2006 |
0.00 |
2,428 |
0.00 |
0.00 |
795 |
24,495 |
26,923 |
0.00 |
0.00 |
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| Cash
Flow Summary
(Thousand $) |
Year |
Net Cash-Ops |
Net Cash-Inv |
Net Cash-Fin |
Net Change |
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2004 |
9,394 |
-1,810 |
-7,584 |
0.00 |
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2005 |
11,604 |
-2,180 |
-9,424 |
0.00 |
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2006 |
10,919 |
-1,036 |
-9,883 |
0.00 |
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- Avoid 
- Short-Term Growth
- Long-Term Growth 
- Long-Term Value 