Encore Energy Announces Off-set Well Results to its Recent Kentucky Oil Discovery (~270 BOPD IP)

March 9, 2016

Tech News

Bowling Green, KY (March 9, 2016):  Encore Energy, Inc. announced today that the Company has drilled and completed a direct off-set well to it’s Warsaw discovery that reported a flowing ~270 BOPD IP (24-hr test rate). Encore’s immediate off-set well reported nearly ~18’ of formation, high-oil saturation and porosity approaching ~15%. The Company believes that both wells have the potential to produce at rates approaching ~10 – 12% of the discovery’s initial flowing IP rate, which equates to sustained rates that are ~200 – 400%+ higher than the Company’s partnership rate projections. The Company has also drilled 2 additional wells deeper on this same lease with plans to “Frac” the Corniferous Limestone.

“Encore’s team carefully engineered the treatments for both wells, and we are extremely pleased with the sustained production volumes and rates from both wells, thus far”, said Steve Stengell, Encore’s President CEO and Chairman.  “We believe there exist tremendous opportunity for the successful application of improved well completion technologies in this area, which includes completion design and stimulation treatments that were previously developed for oil carbonate formations in other areas, such as Texas, southern Illinois and Oklahoma.” Added Stengell.

“These initial results far exceed our expectations, projections and provide the Company with tremendous confidence in the development of a larger trend and more potential new discoveries in the area”, said Joseph Hooper, Encore’s EVP of Business Development. “The fact that domestic production is declining and setting the stage for a strong recovery for the price of oil, makes these projects even more attractive for Encore and its partners”, added Hooper.

Encore currently controls ~15000 acres and prospects targeting several limestone and dolomite oil formations in south central Kentucky with plans to acquire ~50000 – 100000 lease acres in the future.  As the most active operator in the area, Encore has drilled 27 wells and has recently launched a new 30-well program for 2016. The US government allows qualified SEC defined Accredited investors to deduct 100% of the IDC Intangible Drilling Cost deductions against all ordinary income with up to 95% of the deduction occurring in year one, at the time the investment is made (i.e. 2015 or 2016 tax years).  

Oil and gas exploration involves a high degree of risk and uncertainty and is only suitable for qualified SEC Accredited investors. No assurances can be made as it pertains to rates, volumes, reserves, estimates, profitability or timelines.

For more information, please contact Joseph Hooper at (270) 842-1242, ext. 224 or via e-mail at Joseph.hooper@encore-energy.com

Assumptions, Disclaimer and Cautionary Statement: The information herein may contain forward-looking statements, and actual results may vary. Oil and gas investments involve a high degree of risk, uncertainty and are only suitable for qualified Accredited (SEC Definition) investors who are sophisticated in making business decisions and can bear the financial loss of their entire investment. The Company does not provide tax advice and investors should seek the advice of their tax professional. Any tax information herein is provided for illustration purposes only, may include estimates and is subject to change. It is impossible to accurately forecast profitability, production, reserves, income, expenses and timelines for any project. No assurances can be made and the estimates herein are subject to change, and may represent best case. Actual production is beyond the control of management. The IP rate reported herein is based on actual production data that is well-documented. The Company’s lease acreage position includes acreage under lease, Farmout agreement, verbal agreement, renewals and any other prospective acreage in which the Company has communicated and/or negotiated with the landowner the leasing of oil and gas rights, now or in the future, and the lease / mineral owner has leased or communicated their intent to lease there mineral lease rights to the Company.  It is important for qualified investors to acknowledge the fact that the US government provides them with tax savings (100% IDC tax deduction) to mitigate or at least off-set some of the financial risk associated with domestic oil and gas investments.  This is not an offer to sell or buy a security. An offer shall only be made by a offering memorandum, and this is not an offering memorandum.   Investors are encouraged to ask questions and request information from the Company.

 

 

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