The Company announced today that it has successfully drilled a direct off-set to its recent oil discovery, which reported a 24-hour initial test rate of ~270 BOPD. This 2nd location reported good oil saturation and maximum porosity of ~14% similar to the original discovery well with multiple-zone production potential.
“We are very pleased with the results our direct off-set well and moving the rig in preparation of drilling a 2nd direct off-set well location to our recent discovery”, said Joseph Hooper, Encore’s EVP of Business Development and Director.
Encore continues to acquire and develop drilling prospects and remains confident in a strong recovery for oil. The Company’s growing acreage position approximates ~15000 acres while targeting ~50000+ acres long-term. In December 2015, the Company achieved record production, lower operating expenses and completed the acquisition of its own saltwater disposal well system to optimize long-term production operation.
The Company plans to drill up to 30 well locations for its 2016-E program and is in the early stages of drilling and developing 6 immediate proposed well locations for its partnerships under management in the first quarter. Encore firmly believes that the further oil prices fall in the short-term, the steeper the slope of the price recovery. Encore is focused at making its projects profitable at $20 – 30 oil in preparation for a financial exit in 2 -3+ years when oil is trading at a sustained $70 – 100. The Raymond James January 4, 2016 energy report forecast $50 per barrel for 2016 and $70 oil for 2017.
“We embrace the lower oil price in order to acquire and grow assets for the long-term”, said Steve Stengell, Encore’s President CEO and Chairman. “Encore and its investors are targeting a 2-3 year exit plan that would deliver strategic assets to a larger operator and/or industry investor in the future”, added Stengell.
Oil and gas exploration involves a high degree of risk, uncertainty and is suitable only for industry participants and qualified SEC Accredited investors who are sophisticated and experienced in making business decisions.
For more information regarding Encore and its projects, please contact Joseph Hooper at (270) 842 – 1242, ext. 224 or via e-mail at Joseph.email@example.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. Sustained production is normally equal to 10 -2% of the IP. 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.