Stengell previously served as the well operator for a successful horizontal Woodbine oil discovery in Texas, which produced 58,000 barrels in the first year. He also has experience serving as an operator in Texas and Oklahoma. Stengell founded Encore Energy in 2011 after serving as president and CEO of a publicly traded exploration and production company. “Even at an early stage of development, the Berea reportedly represents nearly 25 percent of the state’s total annual oil production, and the majority of this Berea oil production is located directly offset from our assets.” “This could result in hundreds upon hundreds of horizontal wells that can be drilled,” Stengell says.
The Berea is potentially productive across multiple counties in Kentucky, including Lawrence, Greeenup, Martin and Johnson counties, which represents a huge area of operations. “From a economic perspective, the well economics are very similar to the Eagle Ford, Permian and Bakken however, allows capital groups to better diversify their investment because of lower well costs and allows them to possibly take advantage of the Rogersville shale in the future,” he adds. The Kentucky Oil and Gas Association has referred to the Berea as a “game changer.” Stengell says he believes the region is comparable to deeper, more expensive oil and gas plays such as the Bakken and Eagle Ford shale and the Permian Basin. “Oil prices are moving up, and with geopolitical tensions in the Middle East, you can already see activity ramping up in the Berea play and across the United States,” he adds. Stengell believes now is a good time to pursue activity in the region. “In the interim, we will continue drilling properties at our own pace. “We are de-risking the project and creating a platform for larger capital groups to invest,” Stengell says. Encore Energy is also focused on lease verification, acquisition, title, surveying, engineering and other important and extremely expensive pre-drilling costs. The company is in the process of drilling vertical top holes in preparation for its horizontal drilling operations. “We are building a serious production and exploration company long-term we’re moving aggressively in the Berea.” “We believe we have potentially 10 proposed horizontal well locations that are offset to the most proven production and/or the most recent permit and drilling activity in the play,” Stengell adds. “We’re looking for institutional capital groups and sophisticated ultra-high net worth individuals as investors or to joint venture with us to develop multiple horizontal wells and prove up acreage across the entire Berea play.”Įncore Energy’s recent leases are near wells that reported the highest production rates across the entire Berea play. “We are positioned to drill multiple horizontal wells in a half-dozen areas of Lawrence County directly offset to some of the very best proven and verified Berea production,” Stengell says. “Many mineral owners have specifically requested that we drill, develop and produce their properties.”Įncore Energy has recently acquired drilling rights to the JDH Estate lease, a large tract of land that was not previously leased by other major operators drilling in the most proven areas of the Berea play in Lawrence County. “In our last year of operating in the Berea, Encore Energy has demonstrated that it is a first-class operator,” he adds. That well is the first of several the company intends to drill in the region. The Bowling Green, Ky.-based company last year began drilling its first non-conventional horizontal well, the Encore Adkins Bud #H1, in the Upper Devonian Berea Sandstone in the southern part of play in Johnson County, Ky. “This has resulted in a investment platform for our capital partners in what we believe to be one of the most prolific horizontal and non-conventional ‘tight oil’ oil and gas plays in the eastern United States.”
#Encore energy oil corporation ltd skin
“We have skin in the game and have made major investments and sacrifices at a time when other companies were shutting their doors,” President and CEO Steve Stengell says. continued to explore drilling opportunities and acquire drilling rights in Eastern Kentucky. When other oil and gas exploration companies were retracting their operations in light of the decline in oil prices in recent years, Encore Energy Inc. Encore Energy continues to seek exploration and production opportunities in the Upper Devonian Berea Sandstone in Kentucky.
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