Encore Acquisition Co., Fort Worth, Texas, (NYSE: EAC) and Encore Energy Partners LP (NYSE: ENP) say the syndicate of lenders underwriting their revolving credit facilities have reaffirmed their borrowing bases.

The reaffirmations come as a result of the completion of the spring semi-annual redetermination.

Encore Energy Partners’ base of $240 million was reaffirmed. Although Encore Acquisition’s borrowing base was revised to $900 million, less than its previous $1.1 billion base, the company monetized some of its 2009 oil derivative contracts and used the proceeds of $190.4 million to pay down its debt.

The next borrowing base redetermination for both companies is scheduled for October 2009.

Encore senior vice president and chief financial officer Bob Reeves says, “Our strong balance sheet, substantial liquidity, shallow declining properties, and nimble budget have allowed us to uniquely position Encore for 2009. We removed our 2009 oil hedges at [Encore Acquisition] for a substantial gain that we then applied to our outstanding debt balance. In the event oil prices move higher, we will benefit from higher cash flows that can be applied to further reduce debt or apply to a robust drilling inventory. If oil prices weaken, we can adjust the capital budget accordingly because of our stable production base and lack of long-term drilling contracts. Either way, Encore is one of only a few companies that will be stronger exiting 2009 and well positioned for opportunities in 2010.”