Encore Energy Announces “Kentucky Warsaw” Oil Discovery (270 BOPD IP)
Bowling Green, Kentucky (PRWEB) November 29, 2015 -- Encore Energy, Inc. announced today that the Company has made a new Warsaw oil discovery in south central Kentucky. And, has immediate plans to drill eleven (11) drill-sites to prove-up a new field in an area offset to where millions of BO have been produced from the Cincinnati Arch and Illinois Basin. The Company's discovery well reported a ~270 BOPD IP (initial 24-hour production rate) with ~20’ formation, high-oil saturation and porosity approaching 18%. Encore currently has ~15000 acres and prospects targeting several limestone and dolomite oil formations in south central Kentucky. The Company has drilled 25 of 28 wells and is planning a new 30-well program for 2016.
"Encore's team carefully engineered the stimulation treatment, and the initial production test rate from this discovery is well-documented", said Steve Stengell, Encore's President CEO and Chairman. “These initial results far exceed our expectations, projections, historical rates and provide the Company with tremendous confidence in the continued development of a much larger formation trend and more potential new discoveries in the area", added Stengell.
"We are extremely excited about the opportunity to present our future plans and provide field tours to both institutional and high net worth investors in December", said Joseph Hooper, Encore's EVP of Business Development and Director. “These initial production results are more comparable to the Bakken or Eagle Ford, but at only “1/50th” of the per-well cost”, added Hooper.
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 tax year). This typically results in an immediate tax savings equal to 40 - 53% of his or her total investment. Oil and gas exploration and development involves a high degree of risk and uncertainty. No assurances can be made as it relates to production, reserves, income or timelines.
For more information, please contact Joseph Hooper at (270) 842-1242, ext. 224 or via e-mail at Joseph(dot)hooper(at)encore-energy(dot)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.
Steve Stengell, Encore Energy, Inc., +1 (270) 438-9956, [email protected]
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