Multi-Well Oil & Gas Investing

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.

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

News Update: New lease acquisition in Okmulgee, Oklahoma has been finalized. Original Link: Oil Drilling Project Deadline

This land has at lease 9 wells that are either operational already, or will be pumping oil shortly with a minimal cost. Continued funding will, of course, allow us to get these operational more quickly, as well as check out new sites on the lease that we have surveyed to get the best possible results from this opportunity.

This is speculative, and should be not be considered an assurance of production or distributions, but we expect that this lease alone should give us back a strong ROI on this lease, which is indeed a very strong addition to the Synergy Oil, LLC. program.

This new addition to the project is indeed a very strong asset to the Synergy Oil, LLC. fund.

More information on this, including geological reports, past performance, and more are available to prospective investors only for the time being. If you would like to speak to someone with Synergy Oil, LLC., you may use the Contact Us form, or by calling our Toll-Free 888 number listed on our Home Page

The well being drilled in those pictures is the Coats #9 our water disposal well. The surface casing being set is the coats #8. The #8 is being drilled down today. Both these wells are around 750 ft, These wells are both in Craig county.

Anytime, if the deal is good enough would be the best answer to the question of when is the best time, or when should you invest in oil & gas. Another good reason would be taxes. If you pay significant taxes, oil & gas tax benefits, and write-offs are about the only thing remaining for investors who can’t write-off all of their business expenses, or their real estate investments don’t shelter enough of their active, or passive income to suit them. Timing is everything in life, and when oil & gas prices are high, and going higher, drilling projects make very good sense. All income and profits you make are above and beyond what you take as legitimate tax write-offs. In other words, you are making a return on money you would have paid the IRS if you don’t make the investment in oil & gas drilling projects. Most of us haven’t seen the governmnet giving us money these days.

First year tax write-offs for oil & gas drilling programs are quite generous. Our projects provide first year write-offs of up to 85% of the Intangible Drilling Costs (IDC). Drilling mud, drill bits, contract labor, and anything ‘used’ during drilling operations can be taken in the first year as write-offs. Essentially, the expenses or write-offs flow through to investors. Tangible Drilling Costs (TDC), can be taken as Accelerated Depreciation. These write-offs can be taken on the equipment over a 7 year period. In addition, investors get a 15% yearly depletion allowance until their original investment is returned, and before recapture rules apply. Our CPA’s over the years have told us investors can write-off their investment about twice over the life of the wells, or as long as they produce. Consult your oil & gas tax specialists for a definitive answer and to make sure you understand the tax ramifications of investing in oil & gas drilling programs.

Investors, timing is everything in life, as everyone knows. We have private investors, and industry partners with funding, and the motivation, and commitment to pursue our lucrative horizontal drilling project, and we now have the oil pricing we need. It’s time to drain the 4-5 million barrels of oil from our Doneghy Lease oil reservoir in Okmulgee County, Oklahoma. The Doneghy Lease reservoir has never been drilled-out, or water flooded before our arrival on the scene. Elco has persisted in our efforts to finally receive the necessary drilling permit to drill under the North Canadian River and its Flood Plain while we are also satisfying the Oklahoma Federal Wildlife Refuge who control our lease as surface owners. So, we can now proceed with our drilling plan.

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