Platteville-based Synergy Resources Corp. is teaming with a Texas oil and gas company to develop oil and gas leases in Morgan and Weld counties.
The company entered into a joint venture agreement with Vecta Oil & Gas on March 1, according to a news release.
The agreement allows Synergy a 35 percent working interest in 45,661 net acres and a 65 percent interest in 2,983 net acres in the outlying portions of the Wattenberg Field in northeastern Weld and Morgan counties.
"We are very pleased to announce this joint venture with Vecta as it significantly increases Synergy's exposure to a large segment of the Wattenberg Extension Area," said Synergy President and CEO Ed Holloway , in the release. "The extension area is rapidly becoming one of the most actively drilled areas of the D-J Basin and recent results announced by other operators are exhibiting compelling returns on invested capital. We look forward to working with Vecta to evaluate the areas' potential for exploration and development."
Synergy will be the designated operator of both areas, and will start by drilling a horizontal well on one of the leases to test results from either the Niobrara shale about 7,000 feet below the surface or the Greenhorn formation, about 7,800 feet below the surface.
Synergy will pay Vecta $2.84 million and issue 100,000 shares of its restricted common stock worth about $640,000, to Vecta in the deal, the release stated.
Synergy reports it has increased its acreage in the Wattenberg Extension Area by 36 percent to approximately 19,400 acres.
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