| Cautionary Statement This presentation 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 presentation relate to, among other things, the likelihood and benefits of acquisitions and joint venture arrangements; strategic objectives for 2009; drilling opportunities, plans, and results; expectations regarding new plays (including, without limitation, the Bakken, Haynesville and TMS); expected oil and natural gas production; the amount of original oil in place at Encore's fields; the potential value of reserves; reserve potential or upside; reserves by location; estimated decline rates; expected cash flows; expected revenues and expenses; projected differentials; expected capital expenditures (including location and amounts); rates of return; ability to develop various plays (including the Bakken and Haynesville plays); ability to maintain our rig program; ability to bring CO2 to the Cedar Creek Anticline or Bell Creek and the benefits therefrom; future drilling locations and the benefits and costs associated therewith; the impact of the net profits interest; analyst expectations for 2009 and beyond; ability to pay down debt; the benefits of a master limited partnership; the ability of Encore Energy Partners LP to maintain or raise its distribution; and the cost and benefits of the stock repurchase program and derivative financial instruments. 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; derivative transactions (including the costs associated therewith and the ability of counterparties to perform thereunder); uncertainties in the estimation of proved, probable, and possible 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 ability of lenders and derivative counterparties to fulfill their commitments; the strength and financial resources of Encore's competitors; regulatory developments; environmental risks; uncertainties in the capital markets; uncertainties with respect to asset sales; general economic and business conditions (including the effects of the worldwide economic recession); industry trends; and other factors detailed in the most recent Form 10-K of Encore Acquisition Company and Encore Energy Partners LP, and other filings with the Securities and Exchange Commission (SEC). 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. The SEC permits oil and natural gas entities, in their filings with the SEC, to disclose only proved reserves that an entity has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Encore uses certain terms in this presentation such as "possible", "probable", "potential", "upside", or other descriptions of volumes of reserves potentially recoverable through additional drilling or recovery techniques (such as waterfloods and CO2) that the SEC's guidelines would prohibit Encore from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and, accordingly, are subject to substantially greater risk of being actually realized by Encore. Investors are urged to consider closely the disclosure in our Form 10-K and Forms 10-Q, File No. 1-16295, available from Encore at Encore Acquisition Company, 777 Main Street, Suite 1400, Fort Worth, Texas 76102, Attention: Corporate Secretary. You can also obtain these forms on the SEC's website at www.sec.gov. |
