Bowling Green, KY (01/04/2016): Encore Energy, Inc. announced plans to drill up to 30 additional wells off-set to the Company’s recent oil discoveries in south central Kentucky. The Company’s more recent discovery well reported a ~270 BOPD IP (initial 24-hour production test rate) with ~20’ formation, high-oil saturation, porosity approaching 18% and eleven (11) immediate off-set drill-site locations. Encore currently has ~15000 acres and prospects targeting several oil formations in south central Kentucky.
“The results from our most recent discovery far exceeds our expectations, projections, historical rates for this area and provides the Company with tremendous confidence in the continued development of a much larger drilling program for 2016″, said Joseph Hooper, Encore’s Executive Vice President of Business Development. “Encore’s business model not only embraces today’s oil price but provides the opportunity to invest in strategic assets and prospects that would not be available under a scenario of higher prices”, added Hooper.
Encore’s objective is to provide each partner with monthly income, ROI, clear communication, low-cost drilling, asset protection and 100% IDC tax deduction. Encore’s partners are accredited investors (SEC definition) and include high net worth individuals, corporations, family offices and qualified investor groups. Encore attempts to mitigate risk and preserve investor capital through the diversification provided by its multiple-well turnkey drilling programs.
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. This typically results in an immediate tax savings approximating ~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. Actual production, reserves and results are beyond the control of management.
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. Initial production shall decline and sustained long-term production is typically equal to 10 – 20% of the IP well test. The best case tax scenario herein assumes a 13.3% state tax for California residents. 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, request information and visit actual field operations. The Company maintains an open-door policy in the office and provides supervised field tours for its investors.