FORT WORTH, Texas–(EMWNews)–Encore Acquisition Company (NYSE: EAC) (“Encore”

or the “Company”)

today reported unaudited second quarter 2008 results.

The following table highlights certain reported amounts for the second

quarter of 2008 as compared to the second quarter of 2007 ($ and shares

outstanding in millions, except average price amounts):

		Qtr Ended June 30,
		2008				2007
Oil and natural gas revenues		$	354.8			$	180.7
Average realized combined price ($/BOE)		$	102.03			$	47.99
Development and exploration costs incurred		$	142.3			$	94.0
Unproved acreage costs incurred		$	18.6			$	20.5
Acquisition related costs incurred		$	5.7			$	365.9
Adjusted EBITDAX		$	263.2			$	120.5
Net income (loss)		$	(35.7	)		$	15.2
Net income excluding certain charges		$	88.6			$	16.2
Weighted average diluted shares outstanding			52.3				54.0

Adjusted EBITDAX increased 118 percent to $263.2 million for the second

quarter of 2008 as compared to $120.5 million for the second quarter of

2007. Adjusted EBITDAX is defined as adjusted earnings before interest,

income taxes, depletion, depreciation, and amortization, non-cash

equity-based compensation expense, non-cash derivative fair value loss,

and exploration expense. Adjusted EBITDAX is reconciled to its most

directly comparable GAAP measures in the attached financial schedules.

Encore reported a net loss for the second quarter of 2008 of $35.7

million ($0.68 per diluted share) as compared to net income of $15.2

million ($0.28 per diluted share) for the second quarter of 2007. Net

loss for the second quarter of 2008 included a net derivatives loss of

$257.8 million comprising settlement payments of $19.6 million, premium

amortization of $17.3 million, a mark-to-market loss of $219.5 million,

and amortization of deferred hedge loss in revenue of $1.4 million. Net

income for the second quarter of 2007 included a net derivatives loss of

$20.2 million comprising settlement payments of $8.7 million, premium

amortization of $11.3 million, a mark-to-market gain of $13.3 million,

and amortization of deferred hedge loss in revenue of $13.4 million.

Encore reported net income excluding certain charges for the second

quarter of 2008 of $88.6 million ($1.65 per diluted share), a 449

percent increase over net income excluding certain charges for the

second quarter of 2007 of $16.2 million ($0.30 per diluted share). Net

income excluding certain charges for the second quarter of 2008 excludes

derivative gains and losses not related to the current period and

non-cash compensation expense related to Encore Energy Partners LP (“ENP”).

Net income excluding certain charges for the second quarter of 2007

excludes derivative gains and losses not related to the period and a

loss on the disposition of oil and gas properties. Net income excluding

certain charges is reconciled to its most directly comparable GAAP

measure of net income (loss) in the attached financial schedules.

Jon S. Brumley, Encore’s Chief Executive Officer and President, stated, “The

quality of Encore is shining through with record revenues and EBITDAX

from our properties. The significance of being an oil weighted company

is more pronounced today than ever before. Our EBITDAX was $75.68 / BOE

for the second quarter of 2008 reflecting another quarter when our

properties generated more “cash margin”

per Mcfe than our gas weighted peers generated in “revenue”

per Mcfe. A $75.68 per BOE margin equates to a margin of $12.61 / Mcfe

on a conventional industry standard 6 to 1 basis at a time when the

NYMEX gas price was only $10.94 / Mcf for the second quarter. Since

2006, we have been focused on controlling costs and taking advantage of

the oil to natural gas disparity in the market place; you are now

observing the benefits of that strategy.”

Mr. Brumley went on to state, “We are pleased

to see improving results from our two largest areas of capital

deployment: the Bakken/Sanish in the Williston Basin and the West Texas

JV in the Permian Basin. These areas were already working well, but now

they are even better. We previously announced the Charlson 11-16H Sanish

well, which IP’d at 1,100 BOE/D and averaged

843 BOE/D over the first seven days. We are continuing to drill in the

Charlson Field and plan on completing our next well there in early

September. In our West Texas JV with ExxonMobil, we are proud to

announce the Pyote Gas Unit 3-3H in which we have a 30 percent working

interest and a 22.5 percent net revenue interest. This well is testing

from the Montoya formation at a current rate of 12.7 MMcfe/D. We have

drilled a lot of wells in the past ten years, and this well has the

largest IP of any that we have ever drilled at Encore. This Pyote well

was a commitment well in the West Texas JV and confirms over 20 Montoya

locations in Block 16. We believe we can exploit Waha and Coyanosa in a

similar fashion, both of which are West Texas Montoya fields in the

Delaware Basin. An area that should not be overlooked is the Brown

Bassett field in the West Texas JV. We have uncovered Devonian

horizontal production in this field. We have tested the Bassett Goode 7H

and the Banner Estate 49H at 4.5 MMcfe/D and 3.4 MMcfe/D. The potential

here is vast because these are the first Devonian producers in this huge

old field. The Midland Basin continues to deliver. We increased our

production volumes from the Midland Basin to 5.8 MMcfe/D in the quarter

despite a pipeline curtailment that negatively affected our Midland

Basin production by 1.2 MMcfe/D.”

The Company’s NYMEX oil differential

continued to tighten in the second quarter of 2008 to $7.08 per Bbl from

$8.99 per Bbl in the second quarter of 2007. The average NYMEX oil price

rose 91 percent to $124.30 per barrel (“Bbl”)

in the second quarter of 2008 versus $65.06 per Bbl in the second

quarter of 2007. As a percentage of NYMEX, the tightening of the Company’s

NYMEX oil differential is even more apparent, as it decreased from 14

percent in the second quarter of 2007 to six percent in the second

quarter of 2008. The combined effect of rising commodity prices and

narrower differentials was a 109 percent increase in the Company’s

average wellhead oil price, which represents the net price the Company

receives for its oil production, which rose to $117.22 per Bbl for the

second quarter of 2008 from $56.07 per Bbl in the second quarter of 2007.

Encore reported another quarter of record oil and natural gas revenues

as the Company continued to reap the rewards of the high commodity price

environment throughout the quarter. Oil and natural gas revenues

increased 96 percent in the second quarter of 2008 to $354.8 million

over the $180.7 million reported in the second quarter of 2007.

Production volumes were 38,214 BOE/D in the second quarter of 2008,

which exceeded the mid-point of the Company’s

previously announced production guidance. This compares favorably to

second quarter of 2007 production of 36,842 BOE/D (adjusted for 2007

Mid-Continent divestiture). The Company was pleased it exceeded the

mid-point of guidance because of several uncontrollable events that

reduced its production volumes by approximately 607 BOE/D for the

quarter. Adjusting for these uncontrollable events, production for the

second quarter would have been 38,821 BOE/D. In May, a large snow storm

in Montana disrupted the power infrastructure that supplies electricity

to the Company’s wells in the Cedar Creek

Anticline. Sustained high winds delayed the Company’s

ability to restore production until the severe weather had subsided. All

power has since been restored and production is back online; however,

quarterly average production was negatively affected by approximately

171 BOE/D. In West Texas, the operator of a third party natural gas

liquids pipeline used by the Company to move liquids from a West Texas

natural gas processing plant to the Gulf Coast has curtailed shipments

by 25 percent due to pipeline problems, which negatively affected the

Company’s quarterly average production by

approximately 200 BOE/D during the second quarter. The Company expects

the pipeline to come out of curtailment in August. In addition, an

unscheduled third-party natural gas processing plant shutdown in New

Mexico reduced the Company’s quarterly

average production by approximately 236 BOE/D. The plant is back online,

and the Company does not expect another shutdown by the plant operator.

Lease operations expenses (“LOE”)

were $40.7 million for the second quarter of 2008 ($11.70 per BOE)

versus $37.6 million for the second quarter of 2007 ($9.97 per BOE).

Encore’s reported LOE per BOE in the second

quarter of 2008 remained in line with previously released guidance. This

was despite the Company incurring $1.0 million ($0.28 per BOE) of

additional LOE in the form of retention bonuses to be paid to field

workers and technical staff, as a result of the Company’s

strategic alternatives initiative.

General and administrative (“G&A”)

expenses for the second quarter of 2008 were $11.6 million ($3.32 per

BOE) versus $6.2 million ($1.64 per BOE) in the second quarter of 2007.

The Company’s reported G&A expenses were

slightly higher than previously released guidance as the Company

incurred $1.5 million ($0.43 per BOE) of costs related to its strategic

alternatives initiative.

Net marketing revenue and expense was a loss of $1.2 million for the

second quarter of 2008 versus a gain of $0.4 million in the second

quarter of 2007. This resulted as the Company discontinued purchasing

oil from third party companies and selling it to other third parties as

market conditions changed and historical pipeline space was realized.

Marketing expenses in the second quarter of 2008 include pipeline

tariffs, storage, truck facility fees, and tank bottom costs used to

support the sale of equity crude, the revenues of which are included in

oil revenues on the Company’s income

statement instead of marketing revenues.

Encore drilled 64 gross wells (23.5 net) during the second quarter of

2008 (excluding one stratigraphic well), 60 of which (21.0 net) were

successful. The following table summarizes costs incurred related to oil

and natural gas properties for the periods indicated:

		Qtr Ended June 30,
		2008			2007
		(in thousands)
Acquisitions:
Proved properties		$	5,687		$	365,909
Unproved properties			18,642			20,528
Asset retirement obligations			68			812
Total acquisitions			24,397			387,249
Development:
Drilling and exploitation			76,876			75,019
Asset retirement obligations			118			(579	)
Total development			76,994			74,440
Exploration:
Drilling			64,619			18,754
Geological and seismic			455			94
Delay rentals			357			157
Total exploration			65,431			19,005
Total costs incurred		$	166,822		$	480,694

Strategic Alternatives Initiative Update

On May 21, 2008, Encore announced that its Board of Directors authorized

the Company’s management team to explore a broad range of strategic

alternatives to further enhance shareholder value, including, but not

limited to, a sale or merger of the Company.

Jon S. Brumley, Encore’s Chief Executive Officer and President, stated, “We

have been studying strategic alternatives at Encore that would bring the

most value to our shareholders. The Board and Management have decided

that a sale or merger of the Company is not currently in the best

interest of our shareholders. The energy and credit markets became very

indecisive during the second quarter. Due to timely acquisitions, a put

based hedging strategy, and our financial flexibility, Encore

Acquisition Company has always excelled in times of market

indecisiveness.”

Mr. Brumley went on to say, “The plan going

forward is simple, achievable, and will add value for our shareholders.

The plan is to divest of non-core properties, drop down properties into

Encore Energy Partners, and purchase puts struck at $110 per barrel for

calendar year 2009. We expect the divestment of the non-core properties

and the drop down will pay off most or all of our bank debt, and the

puts will ensure that we have good cash flow in 2009. The main

advantages of this strategy will be to situate Encore for a larger

drilling program in 2009 and to increase our acquisition capabilities

for long-life properties in our core areas. We will be focusing on

increasing our drilling program in our 240,000 acre Bakken /Sanish play

from two rigs currently to six rigs by the middle of 2009, exploiting

the high rate of return development wells in our West Texas JV, and

drilling our growing Haynesville, Lower Cotton Valley, and Bossier

potential in North Louisiana and East Texas. To increase our focus on

our tertiary opportunities, Encore previously moved Tom Olle into the

position of Vice President of Strategic Solutions to focus on procuring

CO2 opportunities for our 200 million barrels of reserve potential.

These opportunities will sustain growth over the next ten to fifteen

years.”

Mr. Brumley finished by stating, “Encore

Acquisition Company’s Board believes that

this was a worthy task to explore all of our strategic alternatives, and

we believe we have chosen the alternative that will add the most value

to our shareholders. This would not be possible without our great

employees who have displayed the utmost patience and loyalty to Encore.

After implementing our plan, Encore will have more growth and a tighter

focus that will lead to better and better operating results. We

appreciate our shareholders, our Board, and our employees. We are poised

to grow in 2009 and many years to come.”

Operations Update

Bakken/Sanish

Previously, Encore released an update on their first well drilled in the

Sanish Formation in the Bakken Shale play, the Charlson 11-16H, in which

the Company owns a 96 percent working interest. The well was brought

online on July 23 at an initial production rate of 1,106 BOE/D flowing

up 7” casing. The Company is pleased to

report the well is still flowing strong, having averaged 843 BOE/D

during its first seven days of production. The Company is currently

drilling a second Sanish well in the Charlson Field, which it plans to

complete in the third quarter of 2008.

Due to the success of the program, Encore is adding a third rig in

September 2008 to drill Sanish and Middle Bakken wells. In the third

quarter of 2008, Encore plans to begin drilling its Almond Prospect in

Mountrail and Ward Counties of North Dakota where the Company owns

approximately 53,000 net acres. This area is prospective for both the

Sanish and the Middle Bakken.

West Texas

In the West Texas joint venture with ExxonMobil, the Company recently

completed the most prolific horizontal well to date. The Pyote Gas Unit

3-3H is currently testing at 12.7 MMcfe/D out of the Montoya formation

and will be tied into the sales line this week. The well is located in

the Block 16 Field of the Delaware Basin.

In the second quarter of 2008, the Company turned over four deep wells

to production within the West Texas joint venture with each of these

wells meeting or exceeding the Company’s

expectations. One of significance was an upper Devonian horizontal

re-entry well drilled to a lateral distance of approximately 4,000 feet

in the Pegasus Field of the Midland Basin. The well had an initial

production rate of 3.6 MMcfe/D. The Company currently has three rigs

running in the Midland Basin.

Plans are currently being made by the Company to begin development of

the exciting new Devonian play in the prolific Brown Bassett Field. The

first two horizontal wells to establish production from the untested

Devonian Formation were brought online in June and July 2008. The wells

tested at rates of 4.5 MMcf/D and 3.4 MMcf/D, respectively, well above

the expectation of 2.5 MMcf/D per well. These two Devonian wells are

holding strong and still producing approximately 6.0 MMcf/D.

The Company is currently operating five rigs in the joint venture and

will have six rigs operating in the post-commitment phase by the end of

the third quarter of 2008.

Tuscaloosa Marine Shale

The Company recently reached TD in its third horizontal well in the

Tuscaloosa Marine Shale. The well, located in St Helena Parish, LA, was

drilled to a lateral distance of 4,200 feet. This represents the longest

lateral to date in the exciting new play.

Haynesville

On June 13, 2008, Encore elected to exercise its preferential right to

purchase the interest of its partners in its Greenwood Waskom/Stateline

prospect for total consideration of $54 million subject to customary

closing adjustments. The Company closed the acquisition July 15, 2008

and will immediately take over operations on five units currently

producing from the Cotton Valley formation. Encore will also acquire the

Haynesville rights in each of these units. Encore’s

average working interest and net revenue interest will be approximately

92 percent and 72 percent, respectively. This acquisition will add

approximately 3,200 net acres to Encore’s

existing 12,800 net acres in the heart of the Haynesville play, giving

Encore a total of 16,000 net acres. Encore also owns approximately 6,600

net acres in the rapidly expanding extensional area of the play for a

total of 22,600 net acres in the Haynesville play. Encore is currently

permitting locations and expects to add a rig to begin developing its

acreage in the Haynesville play in late 2008.

Bell Creek

Encore is continuing to expand its highly successful Bell Creek

reactivation program in 2008. Encore plans to spend $7.5 million to

return thirteen wells to production and convert nine wells to injection

during the third and fourth quarters of 2008.

Liquidity Update

As previously disclosed, at June 30, 2008, the Company’s long-term debt

was $1.1 billion, including $150 million of 6.25% senior subordinated

notes due April 15, 2014, $300 million of 6.0% senior subordinated notes

due July 15, 2015, $150 million of 7.25% senior subordinated notes due

December 1, 2017, and $547 million of outstanding borrowings under

revolving credit facilities.

The amount outstanding on revolving credit facilities decreased $33

million during the second quarter of 2008. This reflects the strong

operating results and commodity price environment that the Company

experienced during the quarter. Also during the quarter, the Company’s

borrowing base was increased to $1.1 billion.

On June 30, 2008, Encore owned 21.4 million units of ENP, including 0.5

million general partner units, and will receive approximately $14.7

million on or about August 14, 2008 as a result of ENP’s

second quarter 2008 cash distribution on those units.

Third Quarter 2008 Outlook

The Company expects the following in the third quarter of 2008:

Average daily wellhead production volumes		40,500 to 41,500 BOE/D
Average daily net profits production volumes		2,100 to 2,500 BOE/D
Average daily reported production volumes		38,000 to 39,400 BOE/D
Development and exploration capital		$150 to $170 million
Unproved capital		$15 to $20 million
Lease operations expense		$13.25 to $13.75 per BOE
G&A expenses		$3.85 to $4.35 per BOE
Depletion, depreciation, and amortization		$15.00 to $16.00 per BOE
Production, ad valorem, and severance taxes		10.5% of wellhead revenues
Oil differential		-10% of NYMEX oil price
Natural gas differential		1% of NYMEX natural gas price
Income tax expense		37% effective rate
Income tax expense deferred		90% deferred

The above third quarter 2008 guidance ranges for G&A and LOE include

approximately $1.00 per BOE of G&A and $1.59 per BOE of LOE that the

Company expects to record in the third quarter of 2008 related to its

current strategic alternatives initiative. These amounts relate

primarily to future payments expected to be made pursuant to a retention

bonus program implemented for all current employees of the Company.

Conference Call Details

Title: Encore Acquisition Company and Encore Energy Partners LP

Conference Call

Date and Time: Thursday, August 7, 2008 at 9:30 AM Central Time

Webcast: Listen to the live broadcast via http://www.encoreacq.com

Telephone: Dial 877-356-9552 ten minutes prior to the scheduled time and

request the conference call by supplying the title specified above or ID

58376724.

A replay of the conference call will be archived and available via Encore’s

website at the above web address or by dialing 800-642-1687 and entering

conference ID 58376724. The replay will be available through August 21,

2008. International callers can dial 706-679-0419 for the live broadcast

or 706-645-9291 for the replay.

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

Encore’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 strategic alternatives

process, the likelihood and benefits of acquisitions and dispositions,

drilling plans and expectations, expected net profits interests,

inventory growth, expected production volumes and decline rates,

expected revenues, expected expenses, expected taxes (including the

amount of any gain or deferral), expected capital expenditures

(including, without limitation, as to amount and property), expected

differentials, potential hedging programs, possible asset sales to

Encore Energy Partners LP, future purchases under the stock repurchase

program, and any other statements that are not historical facts. 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);

uncertainties in the estimation of proved, probable, and potential

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 injection 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 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; industry trends;

and other factors detailed in Encore’s 2007 Annual Report on 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 forecasted or

expected. Encore undertakes no obligation to publicly update or revise

any forward-looking statements.

Encore Acquisition Company
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
			Three Months Ended								Six Months Ended
			June 30,								June 30,
				2008				2007				2008				2007
Revenues:
	Oil		$	286,924			$	135,596			$	507,458			$	218,219
	Natural gas			67,889				45,131				116,201				78,109
	Marketing			2,521				8,916				6,577				23,857
Total revenues				357,334				189,643				Encore Acquisition Company, Fort Worth, TX Bob Reeves, 817-339-0918 Chief Financial Officer [email protected] or Diane Weaver, 817-339-0803 Investor Relations [email protected] Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89 Get Unlimited Organic Website Traffic to your Website  TheNFG.com now offers Organic Lead Generation & Traffic Solutions