Encore Acquisition Co., Fort Worth, Texas (NYSE: EAC) plans to acquire properties in the Permian Basin of West Texas and the Anadarko Basin of Oklahoma from Kerr-McGee Corp., Oklahoma City, (NYSE: KMG) for $104 million. The transaction is expected to close in November. The properties are in the Levelland-Slaughter, Howard Glasscock, Nolley-McFarland and Hutex fields in West Texas and the Oakdale, Calumet and Rush Springs fields in western Oklahoma. The acquisition includes estimate total proved reserves of 6.2 million barrels of oil equivalent (94% oil; 69% proved developed producing). The properties are long-lived with current production of approximately 1,300 barrels of oil equivalent per day and a reserves-to-production ratio of nine years. The fields are mature legacy waterfloods with large volumes of original oil in place. Encore plans to finance this acquisition with internally generated cash flow and through its bank facility. The company has entered into swaps for approximately 50% of the acquisition's proved-developed-producing volumes with the following fixed prices and intends to swap the remaining proved-developed-producing volumes. Standard & Poor's reports this acquisition will have no immediate effect on Encore's rating of BB-/Stable, though it notes Encore paid a relatively high price for the properties at about $16.77 per proved barrel of oil equivalent, S&P says the acquisition is consistent with Encore's business growth strategy. The financing of the transaction is also expected to maintain credit measures consistent with S&P's expectations for Encore's current ratings.