Multi-Well Oil & Gas Investing

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.

Photo’s for the Ewell and Stott’s Lease are available here Oil Drilling Pictures

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 23^rd 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.

More news to come as soon as it breaks.