Learn about JENCO Energy\'s current offering, a prolific natural gas well in Oklahoma.

1. MISSION:
To identify and lease viable land with the
intent of successfully drilling oil and natural
gas producing wells

2. JENCO Energy is in joint venture with Oklahoma Petroleum, Inc. (OPI). OPI-JENCO has
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developed a team of geologists, engineers, and geophysicists with over 100 collective
years of drilling experience. OPI-JENCO believes in risk management and goes to the
extreme to minimize risk to it’s investors.
The types of wells that JENCO energy drills are offset and developmental wells, which
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have an industry wide success rate of approximately 95%.
Offset wells are drilled adjacent to producing wells, and developmental wells are drilled
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in areas that contain an established producing zone.
Investment in the oil and gas industry is one of the best tax incentives available in the US
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tax code.
OPI-JENCO investors have the chance to touch and see their investment during an
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investor’s trip to the well field and receive a monthly investor newsletter – The Pipeline.
Investors are individually covered by a $2,000,000 liability insurance policy.
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3. The 1990 Tax Act provides an incentive for small producers.
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 15% of gross income from well is tax free
 Remaining 85% is taxed at ordinary income level
The Energy Act of 1992 spurred interest in small producers in the
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oil/natural gas industry by introducing additional tax incentives to the
tax code
100% of initial investment is tax deductible over time.
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[IRS Form 6251, line 25]
 ~80%=Intangible Drilling Costs
(Deductible either in year 1 or over 5 years)
 ~20%=Tangible Drilling Costs
(Deductible over 7 years)
Potential investors are advised to consult a tax professional regarding
tax benefits specific to their personal situation.

4. Fountainhead #1 is located in McIntosh County, Oklahoma, approximately 75 miles
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South-Southeast of Tulsa. It is a turnkey project in which we are offering 30 units of
working interest ownership, each unit a $11,750 investment.
Each unit constitutes a 2.66% working interest ownership and sees a return of 2% of
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net revenues.
Fountainhead #1 is a natural gas well and is projecting a return of investment within
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the first 6 months of production. Investors retain ownership throughout the
lifespan of the well.
The average well produces commercially for 10-15 years, and the conservative
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projected initial daily production is 650,000 CU FT/day. Production will wane over
time.
All investors will be individually on record as working interest owners in the
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Fountainhead #1 well with the OCC (Oklahoma Corporation Commission) and at the
McIntosh County courthouse.

5. Fountainhead #1 has two coal bed zones. They should each
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produce a minimum of 75K cubic feet per day.
Fountainhead #1 DOES have a Jefferson Sand zone. This
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sand is expected to produce anywhere from 200K- 2 million
cubic feet per day.
Fountainhead #1’s final primary pay zone is a very nice
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Woodford zone. This zone is producing 400K cubic feet per
day in the Spindle well, which is located just 3 or 4 miles
away. This zone is uniform across the area and we expect
similar results.

6. Fountainhead #1 will twin a well that was drilled and logged in 1959.
This prospect has four very probable pay zones, each of which is present on the
logs that were run in 1959 and are also present in other current wells in the area.
650,000 CU FT of natural gas/day @ $5.25/1K CU FT
650K CU FT of gas x $5.25(1) x 30 days = $102,375
(1)$5.25 is a very conservative figure. On 12/29/08, natural gas closed at $6.13.
We project an average of at least $6.25 through 2009.
(According to the US Dept of Energy Report - Dec 2008)
2% revenue interest = $2,047.50 unit revenue/month

7. PAT CLARE
GEOLOGIST
Mr. Clare has extensive experience in the oil and natural gas exploration
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industry, and he has been personally responsible for finding approximately
500,000,000,000 cubic feet of gas and 8,000,000 barrels of oil.
Mr. Clare has studied the geology for Coyote #1 and has prepared a
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detailed geology report.
SID RISNER
DRILLING AND COMPLETION ENGINEER
Mr. Risner will schedule, coordinate and supervise all drilling and
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completion, including mud program, factoring and treatment for the
Coyote 1.
Mr. Risner has extensive experience in the area and specifically the
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completion of hundreds of wells and producing formations: CBM,
Woodford shale, Jefferson sand, etc.