While falling oil prices have caused E&P companies to scale down their operations, Encore Energy bucked the trend by announcing yesterday that it is finalizing the acquisition of approximately 12,000 additional lease acres in western Kentucky.
This acreage includes an additional 1,000 acres in northern Warren County, which is located 2 to 3 miles west of where Encore plans to drill its first horizontal well. The Company now has approximately 3,000 acres leased near the Richardsville, Ben Leo and Riverside communities. Encore’s total acreage under agreement is now approaching 15,000 lease acres.
Encore has previously acquired the rights to an existing horizontal lease, well-bore, well plan and drill-site location in western Kentucky to develop New Albany Shale non-conventional gas and liquids. The Company is currently planning for re-entry horizontal drilling operations to commence in 2015.
“We have a sizeable acreage position with extensive geoscience and engineering underway. The Company is very excited about moving forward with the horizontal development of natural gas and/or liquids in this area”, said Joseph S. Hooper, Encore’s EVP of Business Development.
“The general public truly does not understand the potential that exist in this area for non-conventional shale gas development and what it could potentially contribute to the local economy in the future”, added Hooper.
Encore continues to increase oil production volumes and rates and is now selling almost weekly truck loads of oil from Warren County while making preparations to drill wells 14 to 20 for Encore’s 30-well oil program.
The Company remains very bullish toward a quick recovery and long-term outlook for crude. “We believe that the true supply and demand fundamentals for petroleum more than supports increasing energy prices for the long-term”, said Steve Stengell, Allied’s President CEO.
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