By OGJ editors
HOUSTON, Oct. 19 -- Encore Acquisition Co., Fort Worth, agreed to buy oil and gas properties in the Permian and Anadarko basins from Kerr-McGee Corp. for $104 million.
The West Texas properties are in Levelland-Slaughter, Howard Glasscock, Nolley-McFarland, and Hutex fields. The western Oklahoma properties are in Oakdale, Calumet, and Rush Springs fields.
The transaction is expected to close in November. Kerr-McGee expects to use $60 million in net proceeds to reduce debt. The sale was part of the Oklahoma City independent's previously announced plan to divest selected properties.
The properties are mature waterflood projects containing an estimated 6.2 million boe of total proved reserves, which are 94% oil and 69% proved developed producing. Current production is 1,300 boe/d.
Encore identified 1.9 million bbl of proved undeveloped opportunities and estimated a $12 million investment for infill drilling in existing fields.