Encore Acquisition Company Furnishes Initial Second Quarter 2008 Operations Results and Announces Haynesville Acquisition

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

reported second quarter 2008 production and provided an operations

update.

Second Quarter Production

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 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 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 July. In addition, an unscheduled third-party natural gas

processing plant shutdown in New Mexico affected 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.

Production of Encore Energy Partners has not been affected by either the

severe weather in Montana, the pipeline curtailment in West Texas, or

the unscheduled New Mexico plant shutdown.

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

“In the second quarter, we weathered a severe storm in Montana, suffered

a pipeline curtailment in West Texas and experienced an unscheduled

plant shutdown in New Mexico, all of which reduced our production

volumes, but we exceeded the mid-point of our guidance range. We did not

let these bumps in the road knock us off track. Absent these

uncontrollable events, our production volumes would have been 38,821

BOE/D reflecting the good operating results we had across the board. The

fact that we met guidance after these short-term problems highlights the

quality of our asset base and the importance of shallow declining

properties that literally allow us to weather storms and still hit our

targets.” Mr. Brumley went on to say, “The

Bakken and Haynesville plays are getting larger and more prolific for

the industry, and Encore has a great position in both plays. Our Bakken

acreage has grown from 150,000 net acres at the beginning of the year to

over 240,000 net acres at the end of the second quarter. We just added

an additional 3,200 net acres in the Haynesville that we will operate

and begin drilling in early 2009. We are also excited about our third

Tuscaloosa Marine Shale well that we are currently running the casing in

the curve and will begin kicking out the lateral horizontally within a

week.”

Operations Update

Bakken

Encore completed three Bakken wells in the second quarter of 2008. The

first two wells were drilled as 10,000 foot laterals in the Bear Creek

field. The Martin Federal 31X-33H averaged 394 BOE/D, and the Brandvick

24-13H averaged 436 BOE/D for the first seven days. Encore recently

finished drilling its first well in the Sanish formation, the Charlson

11-16H and plans to complete the well in July. This well is

approximately four miles northwest of the best Sanish well drilled to

date in North Dakota, the Petro-Hunt USA 2D-3-1H, which has produced

over 560,000 BOE in 19 months. As a result of continued success in the

play, Encore has expanded its acreage position in the Bakken and Sanish

to 240,000 net acres.

Encore plans to add a third rig to drill Bakken and Sanish wells in

August 2008 and expects to drill and complete five-to-six Bakken and

Sanish wells in the third quarter of 2008. At least one of the Sanish

wells to be drilled will be in Encore’s

Cherry Creek Prospect. Two other Sanish wells will be drilled in the

Charlson Field offsetting the Petro-Hunt USA 2D-3-1H well.

The Company has also re-fracture stimulated two additional Bakken wells

drilled in Encore’s Murphy Creek Field.

Production from the Kulish 24-2H was increased from 45 BOE/D to over 200

BOE/D, and production from the Schwindt 31-10H is just coming back

online with encouraging results. Three additional re-fracture

stimulations are scheduled in the third quarter of 2008.

Madison

Encore is continuing its Madison development program in the TR Field in

North Dakota. The Company recently completed drilling the second and

third wells of the three-well program that offset its highly successful

TRMU 21X-14H Madison well. The TRMU 44X-15H and the TRMU 41X-27H are

currently being completed. All indications are these two wells should

perform as well as the first well, the TRMU 34X-23H which came online at

250 BOE/D.

West Texas

Encore turned over four deep wells to production in the second quarter

of 2008 within the West Texas joint venture with ExxonMobil 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 that had an initial production rate of 3.6 MMcf/D.

Another was one of the most encouraging wells drilled to date within the

JV. The Bassett Goode 7H became the first horizontal well to produce

from the Devonian Formation of the Brown Bassett Field. The well was

brought online in late June at a rate of 4.5 MMcf/D. Not only was this

the first well to establish production from the untested Devonian

Formation, but the well exceeded the Company’s

production expectations of 2.5 MMcf/D. Based on the encouraging results

of this well, the Company drilled a second Devonian horizontal well in

the Brown Bassett Field several miles to the south of the Bassett Goode

7H. This well was also successful and began testing at a rate of 3.4

MMcfe/D. These two Devonian wells set up a significant number of offset

drilling locations in the prolific Brown Bassett Field, thereby

establishing an exciting new play for the Company.

Haynesville Acquisition

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 10,000 net acres in the heart of the Haynesville play, giving

Encore a total of 13,200 net acres. Encore also owns approximately 8,000

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

total of 21,200 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 early 2009.

Liquidity Update

At June 30, 2008, the Company’s long-term debt, net of discount, 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.

About the Company

On May 21, 2008, Encore Acquisition Company announced that its Board of

Directors has 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.

Lehman Brothers Inc. has been engaged as the Company’s financial advisor

in this process.

There is no assurance that the review of strategic alternatives will

result in Encore changing its current business plan, pursuing a

particular transaction, or completing any such transaction. Encore does

not expect to update the market with any further information on the

process unless and until its Board of Directors has approved a specific

transaction or otherwise deems disclosure appropriate.

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 closing of the

Haynesville acquisition, the benefits of acquisitions and joint venture

arrangements, drilling and development plans, well completions, expected

field activity levels, the availability of rigs and other oilfield

equipment, inventory growth, expected production volumes, expected

financial results, expected capital expenditures, timing of the West

Texas natural gas liquids pipeline coming out of curtailment, 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 most recent 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.

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