TEXT-S&P release on Encore Acquisition Co

(The following statement was released by the ratings agency)

Aug 27 - Standard & Poor's Ratings Services said today that it lowered its
issue-level rating and revised its recovery rating on Encore Acquisition Co's
(EAC.N) senior subordinated debt. We lowered the issue-level rating to 'B' (two
notches below the 'BB-' corporate credit rating on the company) from 'B+', and
revised the recovery rating to '6' from '5', indicating the expectation for
negligible (0% to 10%) recovery in the event of a payment default.

"The rating action follows the increase in the borrowing base of the
company's credit facility to $1.1 billion from $870 million," said Standard &
Poor's credit analyst David Lundberg. "As a result, there is less residual
value available for subordinated creditors in the event of a payment default."
Fort Worth, Texas-based Encore is an independent oil and gas exploration and
production company.

The ratings on Encore reflect a weak business risk profile based on its
mid-size reserve base (231 million barrels of oil equivalent [boe], including
about 32 million boe held at Encore Energy Partners L.P., a partially-owned
master limited partnership); participation in the volatile, cyclical, and
capital-intensive oil and gas industry; and an aggressive financial risk
profile. These factors are mitigated at the rating level by strong near-term
cash flow visibility, a long reserve life, and a favorable near-term outlook
for crude oil prices.

(For the complete recovery analysis, see "Recovery Report: Encore
Acquisition Co.'s Recovery Rating Profile," to be published immediately after
this article on RatingsDirect.)
RATINGS LIST
Encore Acquisition Co.
Corporate credit rating BB-/Stable/--
Ratings Revised To From
Encore Acquisition Co.
Senior subordinated debt B B+
Recovery rating 6 5
(New York Ratings Team)