4/3/2024 0 Comments Synergy wellsSynergy Resources is based in Platteville, Colo. The maximum interest rate on the line of credit is LIBOR plus 3.0%. The company anticipates using the expanded credit line for acquisitions and to fund a portion of its 2013 capital expenditures program. The amended terms increase the maximum amount of borrowings available to Synergy from $20 million to $30 million, subject to certain collateral requirements. We are continuing to evaluate additional potential acquisitions that would suit our core strategy and the strengths of our management team."Ĭoinciding with the acquisition agreement, Synergy has amended the terms of its revolving line of credit and continues its long-term, expanding relationship with Community Banks of Colorado. "The Orr assets were a prime target for us due to the strategic blocking nature to our acreage, and it allows us access to strategic pad sites in order to expand our vertical and horizontal drilling potential in this field. Scaff, vice president of Synergy Resources. "This acquisition represents a valuable addition to our productive Wattenberg acreage," said William E. Synergy will have a 100% working interest (80% net revenue interest) in the majority of future wells drilled on the leased acreage. Synergy will have a 100% working interest (77% net revenue interest) in 29 of the producing wells to be acquired, with a smaller working and net revenue interest in the remaining seven wells. These leases are near other operators where existing production is 85% oil. Management plans to use existing seismic data acquired in the transaction to establish a drilling program for new vertical and horizontal wells on this acreage. The other 1,005 net acres are northeast of Wattenberg Field in Grover, Colo. Given the 20 acre spacing for vertical wells on this acreage, there is the potential to drill approximately 75 new vertical wells, and based on 80 acre spacing for horizontal wells, there is the potential to drill 55 Codell / Niobrara horizontal wells. About 2,190 of these net acres are in the core of Wattenberg Field, adjoining or near existing Synergy leased or producing acreage. The acquisition includes leases covering a total of approximately 3,933 gross (3,196 net) acres. Synergy will be the operator on 35 of the 36 wells. All of the wells have been drilled vertically to the Codell, Niobrara or J-Sand formations, or both. The combined 36 oil and gas wells are currently producing at an average rate of 360 barrels of oil equivalent (BOE) per day, with the oldest well in the field producing since 2006. Closing is expected at the end of November. Orr Energy will receive $30 million in cash and $12 million in shares of Synergy's common stock when the agreement closes. (NYSE MKT: SYRG) plans to buy 36 producing oil and gas wells in Wattenberg Field of the Denver-Julesburg Basin from privately-held Orr Energy Inc. Sale of 36 producing wells in Wattenberg Field of Denver-Julesburg Basin.
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