Encore Energy, Inc. Provides 1st Quarter Horizontal Berea Oil Well Drilling Operations Update for Lawrence County, Kentucky

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Encore’s objective is to develop six (6) horizontal Berea oil well projects in Lawrence County, Kentucky. The Company has drilled and completed two (2) horizontal wells for production, drilled three (3) vertical Strat test well locations, including a 2000’ vertical test section in northern Lawrence County, and is currently making plans for its 4th, 5th and 6th horizontal Berea oil well projects.

Encore has drilled and completed its first horizontal well in Lawrence County, the JDH #4A, and the #4A is currently awaiting connection to a gas pipeline. Encore has also drilled the vertical Strat test well sections for the JDH #4, #NB-1 and WFC #H1 in preparation for horizontal well operations at both locations. “The final three (3) drill-site selections shall be largely predicated by the results at JDH #NB-1A, WFC #H1 and the two (2) additional Strat well test currently underway”, said Steve Stengell, Encore’s President CEO. “The #NB-1A is in its in early stage of production / returning Frac treatment, and we are already making shipment(s) of crude oil from the lease.

The Company has recently completed a ~10000’ gas pipeline (gas meters, gas transmission, processing equipment, etc.) to deliver gas from its Nelson Branch lease to Lawrence County Gas market, located to the north near Ramey Branch. Encore is also making plans to develop a similar gas pipeline system near Peters Branch to deliver gas approximately two (2) miles north. “The ability to move gas from each horizontal well project should allow us to better produce and manage oil production in the future”, said Joseph Hooper, Encore’s EVP – Director.

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 where the well development costs are significantly lower, as compared to other plays across the US. Berea oil production from Lawrence County, Kentucky reportedly represents nearly 25% of the states total annual oil production.

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 production, income, reserves, profitability, prices, timelines and/or any other estimates.

The SEC definition of an accredited investor is better explained on the SEC’s website:

Qualified SEC defined accredited investors can deduct 100% of their intangible and tangible drilling costs against all forms of income with years of potential income from production. These tax savings mitigate a good amount of risk associated with oil and gas drilling and production.

For more information, please contact Joseph Hooper at (270) 842-1242, ext. 224.

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 reserves, production, income, profit, prices, timelines and/or other estimates. Actual production 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 offering memorandum.

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Steve Stengell
Encore Energy, Inc.
+1 (270) 438-9956
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