FORT WORTH, Texas--(Business Wire)--
Encore Acquisition Company (NYSE:EAC) (the "Company") announced
today that its Board of Directors has adopted a Stockholder Rights
Plan (the "Rights Plan") designed to protect the Company's
stockholders from coercive or unfair takeover techniques. Terms of the
Rights Plan provide for a dividend distribution of one right (a
"Right") for each outstanding share of common stock to holders of
record at the close of business on November 7, 2008. The Rights Plan
would be triggered if an acquiring party accumulates 10 percent or
more of the Company's common stock and would entitle holders of the
Rights to purchase either shares of the Company's stock or shares in
an acquiring entity at half of market value. The Company would
generally be entitled to redeem the Rights at $0.01 per Right at any
time until the tenth day following the time the Rights become
exercisable. The Rights will expire on October 28, 2011.
Commenting on the Rights Plan, Jon S. Brumley, the Company's
President and Chief Executive Officer, said, "The Rights Plan has been
adopted because of stock market instability and not in response to any
current accumulation of shares or takeover situation. The Plan is
intended only as a general deterrent to potentially unfair or coercive
takeover practices that could be employed. In light of the current
circumstances in the financial and securities markets, we believe the
Stockholder Rights Plan represents a sound and reasonable means of
safeguarding the interests of the Company's stockholders. The
Stockholder Rights Plan we have adopted is similar to plans that have
been adopted by more than 1,800 other companies and 12 out of 18
companies Encore considers peer companies."
The Company plans to outline the specific details of the new
Rights Plan in a current report to be filed on Form 8-K with the
Securities and Exchange Commission.
About the Company
Encore Acquisition Company is engaged in the acquisition and
development of oil and natural gas reserves from onshore fields in the
United States. Since 1998, Encore has acquired producing properties
with proven reserves and leasehold acreage and grown the production
and proven reserves by drilling, exploring, reengineering or expanding
existing waterflood projects, and applying tertiary recovery
techniques.
Cautionary Statement
This press release includes forward-looking statements, which give
the Company'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 following: the
distribution, exercisability and trading of the Rights, the effects of
the Rights Plan, the redemption of the Rights, the expiration of the
Rights Plan, and any other statements that are not historical facts.
However, the Company's expectations or forecasts of future events are
subject to a wide range of business risks and uncertainties,
including, without limitation, those risks and uncertainties described
in the Company'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 expected or forecasted. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements.
Encore Acquisition Company, Fort Worth
Bob Reeves, 817-339-0918
Chief Financial Officer
rcreeves@encoreacq.com
or
Kim Weimer, 817-339-0886
Investor Relations
kweimer@encoreacq.com
Copyright Business Wire 2008
