Encore Energy Partners LP Acquires Permian Basin Oil and Gas Properties and Agrees to Purchase Wyoming Gas Property

HOUSTON--(BUSINESS WIRE)--Encore Energy Partners LP (NYSE: ENP) (the “Partnership” or “ENP”) today announced it has closed on the acquisition of producing oil and natural gas assets in the Permian Basin of West Texas for a net purchase price of $14.8 million from a private seller. The properties acquired by ENP have estimated total net proved reserves of 1.03 million barrels of oil equivalent, of which approximately 87% are oil and natural gas liquids reserves. The properties being acquired are 51% proved developed and the current production is approximately 115 Boe/d. The effective date of the acquisition was May 1, 2011.

In addition, ENP has entered into a definitive agreement to acquire certain non-operated working interests in producing oil and natural gas assets in Sweetwater County, Wyoming from an undisclosed seller for a purchase price of $28.5 million. The assets to be acquired have estimated total proved reserves of 4.175 million barrels of oil equivalent, of which approximately 65% are natural gas reserves and 35% are oil and natural gas liquids reserves. The assets are 90% proved developed and the net production attributable to the assets being acquired is approximately 880 Boe/d. Closing of this acquisition is expected in September but the effective date of this acquisition is June 1, 2011.

In conjunction with these acquisitions, ENP has entered into new oil and natural gas hedges covering a substantial portion of the estimated production related to proved developed reserves from these acquisitions for the next several years.

About Encore Energy Partners LP

Encore Energy Partners LP is a publicly traded master limited partnership focused on the acquisition, production, and development of oil and natural gas properties. ENP’s assets consist primarily of producing and non-producing oil and natural gas properties in the Big Horn Basin in Wyoming and Montana, the Williston Basin in North Dakota and Montana, the Permian Basin in West Texas and New Mexico, and the Arkoma Basin in Arkansas and Oklahoma. By virtue of Vanguard’s acquisition of Encore Energy Partners GP LLC and certain limited partner interests in Encore Energy Partners LP from Denbury Resources Inc. on December 31, 2010, Vanguard now owns approximately 46% of the common units of ENP. More information on Vanguard can be found at www.vnrllc.com. More information on ENP can be found at www.encoreenp.com.

Forward-Looking Statements

We make statements in this news release that are considered forward-looking statements within the meaning of the Securities Exchange Act of 1934. These forward-looking statements are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. In addition, management's assumptions about future events may prove to be inaccurate. Management cautions all readers that the forward-looking statements contained in this news release are not guarantees of future performance, and we cannot assure you that such statements will be realized or the forward-looking events and circumstances will occur. Actual results may differ materially from those anticipated or implied in the forward-looking statements due to factors listed in the "Risk Factors" section in our SEC filings and elsewhere in those filings. All forward-looking statements speak only as of the date of this news release. We do not intend to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.