FARMINGTON — A private investment company has committed $100 million to a local oil drilling company to increase production.
Representatives for LOGOS Resources, a Farmington-based oil drilling company, say that ArcLight Capital Partners, a private investment firm, plans to invest $100 million into LOGOS.
"We are just really excited. We are a local company, and we are investing locally," said Silva Guttormsen, LOGOS' public relations coordinator.
The company plans to use the money to develop existing acreage in the San Juan Basin by using both horizontal and vertical drilling technology. Their focus is oil exploration and production, Guttormsen said.
The company has access to explore for oil in about 13,500 acres of federal, state and Jicarilla Apache lands. With the new investment, Guttormsen said, the company plans to explore opportunities to increase their land base.
Guttormsen said the company has 10 employees and plans to drill about 13 wells this year. Since 2012, when the company started, they have drilled about 20 wells that have produced up to 1,000 barrels of oil a day.
LOGOS President Jay Paul McWilliams said his company is excited about the new relationship with ArcLight and Consolidated Management Asset Services. He added that his company wants to become a leader in oil exploration and production.
"Given the extensive opportunities offered by vertical and horizontal development, as well as our strong partnership with ArcLight and CAMS, we are confident that LOGOS will grow into a top-tier (exploration and production) company," McWilliams said in a prepared statement.
Mark Bisso, ArcLight investor, said LOGOS has established a good location for oil exploration and development in the Gallup play area of the San Juan Basin.
"LOGOS has been a leader in the discovery and development of the San Juan Gallup play and has assembled a top-tier acreage position offsetting some of the play's most prolific horizontal wells. The company is very well positioned to add to its acreage position and accelerate the development of its attractive asset base in the years to come," Bisso said in a press release.Erny Zah is The Daily Times business editor. He can be reached at 505-564-4638 and firstname.lastname@example.org.