Colorado-based independent Synergy Resources picked up a bundle of producing wells and leaseholds at the Wattenberg field in the Denver-Julesberg basin for $125 million from unnamed private seller Thursday.
The deal includes non-operated working interests in 17 horizontal wells, with 10 wells currently producing and seven in the process of being completed.
The seven wells being completed are all extended reach, two mile horizontal wells and are expected to begin production before the end of the year.
Working interests in the non-operated horizontal wells range from 6 percent to 40 percent.
Synergy is also acquiring 73 operated and 11 non-operated vertical wells plus 5,040 gross acres with rights to the Codell and Niobrara formations.
September’s net production for the producing assets averaged 1,240 barrels of oil equivalent per day.
There is additional production of 190 net barrels of oil equivalent per day from vertical wells at the sites that have been shut in due to offset completion activities by other operators.
Other assets purchased include 91 net horizontal PUD locations, 35 permits in process for operated horizontal wells, 3D seismic data and an additional 2,400 gross acres with rights to other formations, including the Sussex, Shannon and J-Sand.
The purchase price of the assets is $125 million comprised of $87.5 million in cash and $37.5 million in Synergy common stock.
All of the assets are located in Colorado.
The transaction has an effective date of October 1, 2014 and is expected to close on or about December 15, 2014.