FAQs

Florida

Have an oil and gas-related question? We have the answer. Check out these FAQs and give us a call today for more information!

  • What is Encore Energy?

    Encore Energy, Inc is an independent oil and natural gas exploration and production company focused on developing horizontal drilling projects in Lawrence County, Kentucky. Through its oil and gas investment activities, the company serves as the lease owner, well operator, and investor in its projects.
  • Who can invest with Encore Energy?

    Encore Energy's accredited investor opportunities are available exclusively to SEC-defined accredited investors who meet specific income, net worth, and sophistication requirements.
  • What type of investments does Encore Energy offer?

    Encore Energy offers working interest oil and gas ownership through its horizontal oil drilling projects. Investors own an interest in the wells themselves rather than shares of a publicly traded energy company.
  • What is a horizontal drilling project?

    Horizontal drilling is an advanced technique that allows operators to access larger sections of oil and gas formations compared to traditional vertical wells, potentially increasing production efficiency, value creation, production volume, and reserves while lowering risk to the investor. This approach can make horizontal drilling an important consideration in an oil and gas investment. As a non-conventional project, each well involves multi-stage fracking combined with MDW (measure while drilling) directional and horizontal drilling operations.
  • What tax benefits may be available to investors?

    According to IRS Section 263, qualified investors may be eligible for an oil and gas tax deduction covering a significant portion of qualifying drilling expenses. The tax benefits include a first-year IDC deduction of 87%, with the remaining TDC deductible in subsequent years. The depletion allowance provides that 15% of all taxable production income is deductible for the life of the well. Investors should consult their own tax advisor regarding individual tax situations.
  • Does Encore Energy operate its own wells?

    Yes. Encore Energy serves as the bonded well operator for its projects, overseeing drilling, completion, production operations, and related infrastructure. A direct oil and gas investment allows sophisticated investors to participate alongside the operator of each well project, providing greater transparency, access to real-time reporting, and the potential for lower well costs.
  • How do investors receive income from their investment?

    When wells begin producing, an oil and gas investment may generate monthly distributions based on the investor's ownership interest and revenue from oil sales, subject to operating expenses and market conditions. Encore's oil production is shipped directly to the Ergon refinery in Ohio, where its premium-quality crude oil is sold. Investors receive monthly revenue distributions along with detailed statements from both Encore and the refiner, providing clear documentation of production and sales activity.
  • What makes Encore Energy different from other energy investments?

    Encore Energy provides direct oil and gas investment opportunities with ownership in projects managed in-house and without middlemen. The company emphasizes transparency and consistent investor communication throughout the life of each project. Unlike larger exploration and production companies, Encore focuses exclusively on proven undeveloped (PUD) areas that offset or are in close proximity to successful production within the Berea play.
  • What is a Proven Undeveloped (PUD) drilling location?

    A PUD location is an area where geological and engineering data support the expectation that oil and gas reserves can be commercially developed in the future. Encore focuses on these types of opportunities to help reduce exploration risk while offering potential benefits such as an intangible drilling costs deduction for qualifying expenses. Per the SEC, proven undeveloped projects are positioned directly offset to proven producing projects and have a 90% probability of success in achieving commercial production.
  • Are oil and gas investments risky?

    Yes. Oil and gas investments involve substantial risks, including fluctuations in commodity prices, operational challenges, production uncertainty, and potential loss of investment capital. An oil and gas investment is only suitable for investors who can afford the loss of their entire investment.