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.” “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 has identified horizontal drilling and waterflood upside potential in Ordovician Red River zones.Encore Energy continues to seek exploration and production opportunities in the Upper Devonian Berea Sandstone in Kentucky. The Cedar Creek anticline properties are in the Glendive North, Glendive, and Gas City units in Dawson County, Mont. Cortez owns more than 25,000 net developed acres and more than 48,000 net undeveloped acres, of which 21,000 are mineral fee. The properties are 80% operated and produce 8.4 MMcfd of gas and 1,550 b/d of oil. Total proved reserves are 55% natural gas. The properties have a further 7.8 million boe of identified drilling and waterflood upside opportunities, Encore said. Almost all are complementary to existing Encore operations. Closing is set for the second quarter of 2004. The properties are in the Cedar Creek anticline of Montana, the Permian Basin, and Arkoma, Anadarko, and Fort Worth basins. 3 - Encore Acquisition Co., Fort Worth, plans to purchase private Cortez Oil & Gas Inc., Plano, Tex., for $123 million.Ĭortez has 15 million boe of reserves by Encore estimates, 60% of which are proved developed producing.
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