Oil and Gas Returns

Synergy Oil LLC Bursts through March

synergy — Thu, 29 Mar 2012 17:06:21 +0000

As March comes to a close, Synergy Oil takes a look at what the future holds.

The new management team is settling into place and setting us on track for a killer 2012 year.

We are working on deploying well enhancements on at least two of our leases which will help move them in a positive direction, and we are also in intense discussions to work out a horizontal drilling partnership. These deals and maneuvers have the potential to propel Synergy into a prosperous summer.

On top of all that, we are buying more acreage, and looking into partnerships with various companies- we have been approached more than a few times already to do contracted drilling or to partner up in ventures.

Here’s to a fantastic year with Synergy Oil, LLC!

Synergy Oil – Phone Updates & Changes

synergy — Thu, 08 Mar 2012 22:12:12 +0000

Good afternoon everyone,

We have moved to a new location in order to minimize overhead expenses. Currently, our phone carrier is transferring our 800 service so that our phone number will point the office, however if you need to reach us immediately, please dial: 949.988.35OO.

Thank you!

Letter to Investors

synergy — Tue, 31 Jan 2012 19:44:20 +0000

Dear Investors:

We are currently in the process of tallying up all of the numbers, and receiving the final payments from oil & gas sales. Once that is complete, we will be able to complete the distribution calculations; we expect to have the final numbers and checks ready to send by the end of next week.

Check back as we will be posting a major update in the next few weeks.

Best regards,

Rob Falco
Synergy Oil, LLC

Protected: Montana Resource Assesment: Tanglewood Energy

synergy — Mon, 19 Dec 2011 22:50:43 +0000

Modern Day Gold Rush – Bakken Shale

synergy — Tue, 13 Dec 2011 19:11:09 +0000

The modern day entrepreneur has undoubtedly considered the gold rush of the 1800′s, and dreamt about the possibilities that a modern day gold rush would bring. In today’s world, opportunities come up frequently, albeit with varying levels of success rates, however, those keen on the oil and gas industry can partake in the true gold rush of the modern age.

Wherever oil is discovered, flocks of pioneers and entrepreneurs alike rush to the scene to discover their potential for return. The Bakken Shale is perhaps the most important oil discovery of the passed one hundred years.

Many are well aware that there has been a plethora of oil in the Bakken Shale for over 60 years, but only recently have the horizontal drilling and fracting techniques evolved to the point where these oil reserves are now within reach.

It’s easy to see that oil & gas investing is here to stay, with the best oil and gas returns yet to be seen.

See more at MSNBC

Bakken Shale – America’s Secret Oil Reserve

synergy — Tue, 06 Dec 2011 22:33:41 +0000

The Bakken Shale has been a hot button issue in the oil & gas investment scene for several months now. This area, which is primarily in Montana and North Dakota, stretching up into Canada, is a wealth of oil and natural gas.

For over a decade it was known that oil resided in this shale, but it wasn’t until recently that modern geological equipment and drilling techniques evolved to the point where we could tap into this treasure trove. Even still, no one anticipated exactly how much of the precious resource we would uncover there.

Recent surveys have shown that there is a total mean resource of 3.65 Billion barrels of oil.

More information about the exciting Bakken Shale is available at geology.com

Courtesy: Geology.com

Oil tops $100 on stock surge, euro optimism

synergy — Mon, 28 Nov 2011 17:22:20 +0000

Futures off session highs but up 2.6%
By Claudia Assis and V. Phani Kumar, MarketWatch
SAN FRANCISCO (MarketWatch) — Crude-oil futures topped $100 a barrel Monday, spurred by a strong start to the holiday-shopping season, a weaker dollar, and a surge for equities.

Light, sweet crude futures for January delivery CL2F +1.34% advanced $2.49, or 2.6%, to $99.26 a barrel on the New York Mercantile Exchange. The contract traded as high as $100.73 in electronic trading ahead of the floor open.

Front-month crude futures had last hit the $100-mark on Nov. 16, when they topped $102 a barrel.

Markets “are loving” news about the euro zone, said Matt Smith, an oil analyst with Summit Energy, in a note to clients.

European officials have agreed on how to leverage a rescue fund for the region, according to news reports. Read more about the reported agreement.

In addition, “there is a broad rally underway in risk assets“ and a bit of geopolitical tensions in oil-rich countries, he said.

The jump came in the wake of a strong start to the holiday-shopping season. A report form ShopperTrak said U.S. retailers’ “Black Friday” sales rose 7% from last year’s day-after-Thanksgiving, to $11.4 billion. Read more on Black Friday sales.

Some geopolitical risk premium was in place “due to instability in the (Middle East and North Africa) area,” analysts at JBC Energy said in a report to clients.

“Besides civil unrest in Syria and Yemen, sectarian tensions in Saudi Arabia are also on the rise,” they said. “Meanwhile, stricter sanctions have been placed on Iran with some European countries even considering a ban on oil imports,” they wrote.

The Arab League also imposed sanctions on Syria in a bid to force an end to the violence in the country.

Meanwhile, moves in the dollar and the stock market also kept crude supported.

The U.S. dollar index DXY -0.65% slipped to 78.982 from 79.688 in North American trading Friday, boosting commodities priced in the greenback, including crude oil. Read currencies report.

U.S. stocks surged at the opening, with the Dow Jones Industrial Average DJIA +2.76% rising more than 250 points after dropping in the previous four sessions.

Most energy products tracked crude higher on Monday, with natural gas the outlier.

December natural gas NG11Z -2.80% slipped 10 cents, or 2.9%, to $3.44 per million British thermal units. Natural gas notched a 6.6% weekly gain last week.

December gasoline RB1Z +2.76% rose 8 cents, or 3.1%, to $2.53 per gallon. Heating oil for the same month’s delivery HO1Z +1.37% advanced 6 cents, or 2.1%, to $2.99 a gallon.

Prices kept higher after news sales of new single-family homes barely changed in October, with little evidence of major improvements in the battered U.S. housing market.

New-home sales edged up to an annual rate of 307,000 in October. Economists polled by MarketWatch had expected a rise to 320,000.

From MarketWatch.com

Protected: 3rd Quarter Distribution Checks Have Gone Out

synergy — Tue, 08 Nov 2011 19:26:39 +0000

Protected: Investor Update: September

synergy — Mon, 26 Sep 2011 18:45:52 +0000

River of Opportunity

synergy — Mon, 26 Sep 2011 18:26:34 +0000

Curtesy of TulsaWorld.com

Horizontal drilling breathes new life into Mississippi Lime oil region

by: ROD WALTON World Staff Writer
Saturday, September 24, 2011 - 9/24/2011 4:05:06 AM

A mighty Mississippi is starting to flow in the middle of Oklahoma’s resurgent oil and gas industry.

This potential river of oil occupies what is called the Mississippi Lime – porous limestone formations in northern Oklahoma and southern Kansas. The liquids-rich region, considered tapped out by vertical drilling decades ago, has been yielding reservoirs to horizontal operators such as SandRidge, Chesapeake, Devon and Tulsa-based Eagle Energy LLC during the past two years.

“I think it’s probably the hottest play going in the country,” Eagle CEO Steve Antry said. “We’re producing 4,000 barrels of oil equivalent per day, which is nice.”

Certainly not bad for a company that formed only two years ago. Eagle holds about 75,000 acres in the horizontal Mississippi Lime trend stretching across several counties.

Others are betting big on the region, which reaches as close to Tulsa as Osage County, attracted to the promise of wells with an oil ratio above 50 percent. With natural gas prices fetching less than $4 on most markets, the “oily” Mississippi Lime is a river of opportunity to the state’s producers.

The irony is that these “new” reserves actually lie slightly below formations that were big producers 100 years ago. Phillips Petroleum Co., for instance, made its name in the nearby Burbank Field, on the eastern edge of the play that includes Osage, Pawnee, Kay, Garfield, Woods, Alfalfa and other northern Oklahoma counties.

“It’s sort of amazing that all of this has been sitting there and waiting for horizontal drilling,” Antry said. “The vertical wells hardly drained any of that.”

The gas-rich shale plays first brought major producers back to the domestic fields about 10 years ago. Names like Barnett, Marcellus, Haynesville, Bakken and Woodford Cana became synonymous with unconventional drilling and revived U.S. energy reserves.

The move now is toward the deposits containing mostly oil and natural gas liquids. The Mississippi Lime’s ratio is often 52 to 55 percent oil, according to reports.

“We’re into the second tier of this renaissance,” said Chip Minty, a spokesman for Oklahoma City-based Devon Energy Corp. “Now what we’re doing is taking the same technology beyond the shales to the carbonates, such as limestone.”

Tulsa-based RAM Energy Resources Inc. is certainly intrigued by the promise of the Mississippi Lime, although it is currently focused on the chat formation just above it. RAM is spudding several wells into the chat on its Osage County concessions this weekend.

“Two years ago we began to investigate this play, as it’s the kind of thing that’s right up our alley,” RAM spokesman Robert Phaneuf said. “It’s a reasonably low-cost play where hydrocarbons have been found before, with a lot of wells drilled in the past. And that gives you good data points.”

In fact, the Mississippi Lime, which begins at a depth of about 5,000 feet on average, has about 17,000 vertical data points – seismic information, etc. – throughout the trend, Antry said. The growing number of horizontal data points now exceeds 500.

“You don’t need 3-D,” Antry said. “The nice thing about this trend versus the shale is it requires low-horsepower equipment.”

The limestone’s porosity and natural fractures also can mean less expense on the drilling and hydraulic fracturing parts of the project. Expenses can total half and even a fourth of typical unconventional well efforts.

And the results so far are looking good. Eagle’s Longhurst 3H-34 well in Woods County is maintaining average production of 2,076 barrels of oil and 4.2 million cubic feet of natural gas per day.

“It’s a monster,” Antry said.

But there’s a warning: The Mississippi Lime infatuation is so new that caution is warranted. Some experts see hit-or-miss scenarios.

“There’s going to be sweet spots, but not everything will pan out,” said Dan T. Boyd, petroleum geologist with the Oklahoma Geological Survey. “There are spots that are incredibly juicy, and they’re going to make a lot of money.”

Oklahoma City-based Chesapeake Energy Corp. jumped into the lime quickly as a way of balancing out its natural gas-dominant portfolio in the wake of low prices. Devon also is making moves in that direction and is curious to see how the Mississippi Lime will compare with shales and other generous plays.

“It’s a new venture,” Minty said. “We have a lot to learn and long way to go.”

View Original Article

Rod Walton 918-581-8457 rod.walton@tulsaworld.com