Dynamic to Purchase Well Service Company
Dynamic has signed a letter of intent to purchase the assets of a well service company in Grayville, Ill.
The purchase will be funded with a combination of stock and cash. Dynamic has been working diligently on the purchase for months.
The assets will form the foundation of the Well Service Division in the Illinois Basin. Following the purchase, Dynamic will have an oil well service company, oilfield supply store and oilfield machine shop.
On the production front, the Kelsey-Pierce lease has three wells operating with average production settled between 7-8 b/p.
Three of the five wells on the Kelsey-Pierce lease have been cleaned out with the spudder and the tubing tested.The two remaining wells on the Kelsey Pierce are having a title opinion completed by a local oil attorney.
The White lease had a parted rod and all rods and tubing have been pulled waiting for the spudder to arrive -- back in production next week. The White lease is at 9 feet of oil in the tank and will be ready to sell oil at 13 feet. Dynamic is staking a location to drill on the Kentucky lease before year-end.
The purpose of the new drill is to acquire a core for the field in order to design the appropriate enhanced oil recovery technique.
"We have been working very hard to get to this point in a relatively short period of time. The asset purchase is a great value to shareholders and a model for the type of acquisition we will strive for going forward," said Scott Masse, CEO.
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