If mother nature stays on our side, our next well we will be drilling is on one of our new acquisitions, the North Skinner, which we will be drilling to a depth of 6000 feet. We believe that Sullivan LLC will be drilling the North Skinner, they did a wonderful job on the Stotts #7 well, and we are in negotiations with Sullivan pertaining to the North Skinner project.
Some history on this lease:
These wells can produce between 100 – 300 bopd with a life expectancy of 20 to 30 years. We acquired this lease as well as the Stott’s from Jim Whitcraft, operator and owner of Rainbow Drilling. Jim Whitcraft is the operator of the Stott’s and North Skinner leases, which he stills owns working interest on the North Skinner lease, which gives him a very strong incentive to bring as many wells up and running as mother nature allows us to. We acquired the North Skinner lease for $210,000, also after looking at the economics and numbers, this lease should be very profitable long term for the fund.
June 9th-12th: At the Pasadena Exposition & Trade center, Synergy Oil, LLC presented before hundreds of investors along with the operator, and Dennis Stutes, CEO of Cutting Edge Oil & Gas Technologies.
At the trade show, President Tony Pistilli along with Vice President Robert Falco, presented updates, showcased the program, and got to meet one-on-one with serious accredited investors to discuss a life changing opportunity.
We have assembled a team with several professionals and partners to help us quickly develop our existing and some lucrative new leases we own and are acquiring. We have raised the bar to enable us to quickly establish more production while acquiring several new leases with current and substantial production that we can increase.
We have about 5628 acres of producing leases, we have approximately 114 wells or boreholes to check for production or perform development work on to maximize, restore, and/or enhance their production.
Here is a current list of our leases and counties
Okmulgee, OK
Doneghy
This lease is 2100 Acres, and is where we will be drilling the horizontal, 29 reworks, and has production right now. It has an estimated 5 – 10 million bbls of oils in reserves. We consider this to be our prime lease.
Ewell
810 Acres: This well has 10 existing properties, one injection well, and does 50-75 bopd.
Hughes County
Stott’s
200 Acres, on this lease, there are currently 3 producing wells, including Stott’s #7
Payne County
North Skinner
510 Acres,3 producing wells
Osage County
Bartleville Zone
We just purchased 320 acres and plan to drill multiple Bartlesville zone shallow wells when we receive our drilling permits from Osage Indian Nation. Jim Whitcraft is on the board of directors for the Osage Indian Nation.
Wagoner County
Wagoner
We are in the process of purchasing a new 810 Acre; of the Nitrogen Recycling, or computerized, and automatic Nitrogen Pressurized North Stone Bluff Leases. Don Henson is our oil and gas attorney, and is finishing up the legal work, are our oil & gas lease title-work is nearly finished.
Combining all of our production and leases together, we see our goal of reaching a production milestone of a thousand bopd within 12 months. This is very possible and achievable while we are in process of confirming our estimated total recoverable reserves of about 15 million barrels of oil.
We are all very excited here at Synergy Oil, because after looking at the numbers, the economics of the Stott’s lease should exceed all expectations. We bought this lease for $200,000 with an NRI of 80% with the current production on this lease, the value of the lease should be over $1,000,000 for 2010; with more wells drilled the value will continue to increase, along with production.
We have completed drilling on the Stott’s #7 well, to the depth of 3650 feet, in the Cromwell payzone, which is 70 feet thick. The company that read our drilling logs, said that not only did we hit a well that should last 20 to 30 years, but we just discovered a whole new oil reservoir with up to 5 million barrels of oil in reserves.
With most of our efforts focus on maintaining the Ewell lease and developing the Stotts and North Stone Bluff leases, here is a quick update from the field.
A new well on the Stotts lease started drilling on Friday, April 23rd and is currently at 1000 feet as of 9am this morning.
The Ewell lease is coming back online. The new Gun Barrel tanks and Heater Treater Unit have been delivered and are being installed. Production is expected to resume within 21 days.
The newly acquired North Stone Bluff lease has current production of 20-25 bbls/day of oil and with redevelopment, secondary, and tertiary extraction techniques, these numbers can easily sky-rocket over the coming month’s.
Oil and gas companies are investing millions of dollars into drilling wells locally in the United States. These domestic oil companies are taking advantage of the amazing tax advantages currently being offered by the US Government. Tax Benefits like Intangible Drilling Costs, or IDC let companies, and individual investors, to write off about 85% of their investment, and then, with other allowances, you can write off more each year.
Synergy Oil is one such oil and gas investment company, who is currently working out of Oklahoma, and producing oil as you read this article. (Well, as of writing, inclement weather may be inhibiting drilling efforts, but this does not represent the normal weather on their leases, which cover much of Craig County, OK and other Oklahoma counties.
Timing is critical in any investment choice, and I believe that now, with production really starting to churn out more and more, and as more and more wells come online, this is one vehicle that should really start making your money work for you, instead of you working so hard for your money.
So if you haven’t already received our information package, you can Contact Us and leave your name, email, and phone number, and we will verify your information and get you a freeoil and gas investor kit.
