Encore Energy Partners LP (ENP) was formed by Encore Acquisition Company (EAC) to acquire, exploit and develop oil and natural gas properties and to acquire, own and operate related assets. The Company’s properties and oil and natural gas reserves are located in three areas: the Big Horn Basin in Wyoming and Montana, primarily in the Elk Basin field (the Elk Basin Assets); the Permian Basin in West Texas, and the Williston Basin in North Dakota. As of December 31, 2008, its estimated proved reserves were 16.6 million barrels (MMBbls) of oil and 56.5 billion cubic feet (Bcf) of natural gas. During the year ended December 31, 2008, the Company drilled seven gross (5.1 net) operated productive wells and participated in drilling 30 gross (5.2 net) non-operated productive wells for a total of 37 gross (10.3 net) productive wells. In 2008, the Company did not drill or participate in drilling any dry holes.