BOWLING GREEN, Ky. (PRWEB) November 13, 2020
The JDH #5 reported strong oil fluorescence, oil cuts, oil shows in mud pit, strong gas kick(s) while drilling and circulated oil while cementing casing. The confidential mud log further reconfirms the Company's belief for the well's future crude oil production and total reserve potential. More importantly, the well responded very well to the Frac treatment, much like a high-volume oil producer.
“Encore is super excited about the JDH #5 Frac, well completion and production operations for this well,” said Steve Stengell, Encore's President and CEO.
"We are learning, perfecting our well plan and working with the brightest minds across the Berea play. This could begin a new chapter for Encore and the Company's next three (3) horizontal Berea well projects. The JDH #5 is located off-set to multiple Tier I high-volume Berea oil producers and we are looking for first production in the 4th quarter of 2020 and revenue distribution the 1st quarter of 2021.” The Company has already drilled 2000’ of vertical hole at Fallsburg and making plans to drill the JDH #6 / #7 at Peters Branch,” added Stengell.
Tier I horizontal Berea oil wells in this area have reportedly averaged in the range of ~100 - 150 BOPD over the initial 90 days of production with an estimated EUR ~100000 - 150000 BOE high-side reserve target estimate per well. Berea oil production from Lawrence County, Kentucky reportedly represents nearly ~20 - 25% of the states total annual oil production.
"The fact the SEC defined investors can deduct 100% of their investment against all forms of income (state and federal) and further mitigates a good amount of the risk associated with these projects," added Stengell.
Oil and gas investments are subject to a high degree of risk, uncertainty, unpredictability, indefinite delays, loss of investment and are suitable only for SEC defined accredited investors who are sophisticated in making business and investment decisions. No assurances can be made as it relates to drilling, completion, production, expenses, income, distributions, reserves, profitability, prices, timelines and/or any other estimates.
The SEC definition of an accredited investor is better explained on the SEC’s website: https://www.investor.gov/additional-resources/news-alerts/alerts-bulletins/updated-investor-bulletin-accredited-investors
Qualified SEC defined accredited investors (SEC Regulation D, Rule 506c) can deduct 100% of their intangible and tangible drilling costs against all forms of income (state and federal) with years of potential income from production. These tax savings mitigate a good amount of risk associated with oil and gas drilling, completion and production operations. Investment subscriptions must be received by December 2020 in order to utilize the tax benefit for the 2020 tax year.
For more information, please contact Steve Stengell at (270) 438-9956.
Assumptions, Disclaimer and Cautionary Statement: The information herein may contain forward-looking statements, and actual results may vary. Words such as "estimate", "will," "intend," "continue," "target," "expect," "achieve," "strategy," "future," "may," "goal," or other comparable words or phrases or the negative of those words, and other words of similar meaning indicate forward-looking statements and important factors which could affect actual results. Forward-looking statements are made based upon Management's current expectations and beliefs concerning future developments and their potential effects upon Encore Energy, Inc. 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, while delivering a turnkey profit to the Company for proving the prospect development, lease acquisition, drilling, completion, engineering and ongoing production operations. The Company does not provide tax advice and investors should seek the advice of their tax professional. Any tax and/or other information herein is provided for illustration purposes only and may include estimates that are uncertain and subject to change. It is impossible to accurately forecast profitability, production, reserves, income, expenses and timelines for any project. No assurances can be made as it relates to estimated reserves, production, income, profit, prices, timelines and/or other estimates. Actual production, reserves and results are beyond the control of management. In the event that commercial production is achieved, it may take many years for the investor to recoup his or her investment. The Company's lease acreage position under is subject to change and includes acreage under lease, Farmout agreement, verbal agreement, renewals, expired terms 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 pursuant to SEC Regulation D, Rule 506(c) by a private placement offering memorandum, and this is not a private placement memorandum.