Encore Energy Partners LP (ENP.N) said it will buy oil and natural gas properties in Texas, Montana and North Dakota for $53.8 million in cash, which will be partly funded through a public offering of 2.4 million units by the company.
Shares of the oil and gas company fell 9 percent to $15.04 in trading after the bell. They had closed at $16.57 Monday on the New York Stock Exchange.
The company said it was acquiring properties in the Vinegarone field in Val Verde county, Texas from an independent energy company for $28 million in cash.
Fort Worth, Texas-based Encore added it would also purchase properties from its parent company Encore Acquisition Co (EAC.N) in the Williston basin in Montana and North Dakota for $25.8 million in cash.
The Williston basin and Vinegarone field properties have total proved reserves of about 4.4 million barrels of oil equivalent (boe), Encore said.
Both the transactions, which will immediately add to Encore's distributable cash flow per unit, will be effective April 1 and are expected to close by June 1, the company said.
Shares of the oil and gas company fell 9 percent to $15.04 in trading after the bell. They had closed at $16.57 Monday on the New York Stock Exchange.
The company said it was acquiring properties in the Vinegarone field in Val Verde county, Texas from an independent energy company for $28 million in cash.
Fort Worth, Texas-based Encore added it would also purchase properties from its parent company Encore Acquisition Co (EAC.N) in the Williston basin in Montana and North Dakota for $25.8 million in cash.
The Williston basin and Vinegarone field properties have total proved reserves of about 4.4 million barrels of oil equivalent (boe), Encore said.
Both the transactions, which will immediately add to Encore's distributable cash flow per unit, will be effective April 1 and are expected to close by June 1, the company said.
