Press Release: Encore Energy Closes Kentucky 10-Well Drilling Program
LIGHTNING RELEASES 05/12/14 — Encore Energy is preparing to close its first 10-well drilling program and begin field operations in Western Kentucky. This program’s objective is to test and produce multiple oil target formations.
The Oil-Price.Net one-year forecast for crude oil is $114 per barrel. The average well in this area produces oil for 18-30 years.
The US government permits qualified investors to deduct 100% of the IDC intangible drilling costs against all forms of income in year one. This typically represents 90% of the total investment and a tax savings (state and federal) equivalent to 25 – 40% of the total investment. The remaining estimated 10% of tangible expenses are amortized in subsequent years.
Although Encore’s project(s) boast what the Company believes to be conservative production estimates, there are wells in this area that have initial production rates of 20, 30, 50 and 100 BO per day, as reported by the Kentucky Geological Survey.
“Encore is also planning potential horizontal drilling projects for the long-term”, said Joseph Hooper, Encore’s Executive Vice President of Business Development.
“Drilling operations is tentatively scheduled to begin in the next 30 – 45 days for the Company’s 10-well project”, said Steve Stengell, Encore’s President CEO.
For more information, please contact Joseph Hooper at (270) 842-1242, ext. 224, or Bill Moore at ext. 230.
Cautionary Statement: The information herein includes forward-looking statements and actual results may vary. No assurances can be made as it pertains to geological success, production estimates, reserves, profitability, timelines or that the Company will achieve the necessary funding to make project(s) profitable. The production information herein is public record and provided by the Kentucky Geological Survey. Oil and gas involves a high degree of risk and uncertainty. This is not an offer to sell a security, and offers shall be made only to Accredited investors (as defined by the SEC) through a private placement offering memorandum, and this is not a private placement offering memorandum. The Company does not provide tax advice. The tax example herein includes estimates and is to be used for illustration purposes only.