Welcome to Synergy Oil, today we are going to focus on the latest and greatest news from the field out in Oklahoma. Tony and I just got back from The Sooner State, and as you may have heard about, there were three torrential tornadoes that rampaged throughout the state. Luckily, however, we did not sustain damage to any of our properties during these events.
We are very excited to finally get our drilling rig into our yard in Weleetka, OK. As you read this, our crew is working diligently on the rig to prepare it to drill our first well of this year. Obviously this won’t happen overnight, our oil hands are working through the Easter weekend to hopefully be online by, and reach our goal of the first week of May; as the state motto goes, Labor Omnia Vincit, latin for: Labor conquers all things.
To this effect, we have purchased all of the piping and casing drill up to a depth of approximately 4,000ft. It’s no secret that oil is continuing to rise, we can all feel its bite at the gas station when we pay $4/gallon and higher. And as oil prices goes up, prices on piping and casing increase; currently piping is $22 per foot, yet Jake Stewart our field supervisor found us a deal for $16 per foot, with an estimated savings $24,000.
With this rig, we will be drilling on the North Skinner lease. If the first well we drill comes in at 200+ bopd as expected, we will only move it down to the next spot on the formation. As you can imagine, it’s very costly and time consuming to break down, transport, and reassemble the rig to move it from site to site, so we are planning to minimize the distance it travels.
On the Stotts lease, we have pulled off the pulling unit to remove the plug of paraffin wax that builds up over time. The land in Oklahoma is rich with paraffin so this process is routine. We have unplugged the well, the casing has been cemented and is currently curing and drying, which takes us to the next phase of making this our disposal well. This will allow us to move a significantly larger amount of water and fluid than we were able to before, which in turn allows us to make increased production. We are also bringing 3-phase electricity to the Stotts lease, which will supply more than enough power for the existing 7 wells and any additional drilling, preventing overloads, increasing efficiency, and minimizing downtime.
Finally, we are in negotiations with a Texas based company to equip our drilling rig with web cameras that will allow our investors to sign on, and watch the wells actually being drilled. Our IT Specialist is busy working on the authentication system which will tie the web camera to our investors.
It’s a very exciting time now with oil hitting $111 per barrel. We want to drill between nine and eleven new wells this year, bringing us more production, more revenue, and bigger distributions, and we are going to continue raising the bar and our goals. Our bookkeeping staff for Big Oil, LLC is working around the clock to get distributions mailed by the 25th of April.
Have a great Easter, and look forward to helping Synergy grow bigger and brighter now and in the future.