Synergy Resources Provides Operational Update and 2nd Quarter Conference Call
PLATTEVILLE, CO -- (Marketwired) -- 03/26/14 -- Synergy Resources
Corporation (Synergy) (NYSE MKT: SYRG) has expanded its contract with
Ensign United States Drilling Inc. (Ensign) to include a second
automatic drilling rig (ADR) to execute the horizontal development of
its leasehold in the Wattenberg Field. Synergy believes that a two
rig drilling program utilizing ADR rigs will be instrumental in
accelerating horizontal development going forward. The ADR rigs have
several advantages over conventional rigs, including the capability
of drilling mid and extended reach laterals, reducing the
environmental footprint by using natural gas instead of diesel fuel,
noise abatement and creating efficiencies in leasehold development.
Synergy has secured Ensign Rig #134, an ADR rig, as a replacement for
Ensign Rig #17. Rig #134 has spudded the first of six horizontal
wells planned for the Eberle pad. On the Eberle pad Synergy intends
to drill 2 Niobrara B wells, 1 Niobrara C well and 3 Codell wells.
Furthermore, the plans call for two of the wells to be 7,100 feet
mid-reach lateral horizontal wells.
Ensign Rig #17 has finished drilling the Phelps pad however, due to
severe weather in January and mechanical difficulties with the rig
the Phelps pad is approximately thirty days behind schedule.
Completion is scheduled in late March and Synergy believes production
will begin during May. Three of the wells will be completed using the
plug and perf method and three wells will be completed using sliding
sleeves. Synergy used the sliding sleeve technology on its first
eleven horizontal wells.
On Synergy's Union pad Ensign Rig #131 is currently in the final
stages of drilling the fourth of six wells planned. Drilling on the
Union pad is going according to schedule and Synergy anticipates the
wells will be completed in May and in production in June. The Union
wells consist of a mix of Niobrara and Codell wells. When finished
drilling the Union pad Ensign Rig #131 is scheduled to move to
Synergy's Kelly Farms lease in the Greeley area to drill four
On Synergy's Renfroe pad the wells have been on production for six
months and the average daily production for the two Codell
280 BOEs and the three Niobrara B wells is 230 BOEs. The production
has consisted of 68% oil and 32% natural gas. Current pay back status
is 66% after the first six months of production.
Production on Synergy's Leffler pad didn't begin until the third week
of January due to DCP Midstream's Eaton gas processing plant repairs.
This forced shut down occurred during flow back of the Leffler wells
and the completion fluids remained on the formation for nearly four
weeks. Once the Eaton plant was operational the 30 day average
production for the six wells on the Leffler pad was over 300 BOE per
day per well. Synergy has recently increased the compression capacity
on the Leffler pad to handle higher than anticipated gas volumes from
Synergy has recently completed the drilling and testing of the
Buffalo Run well, a vertical well in the Wattenberg extension area.
The well was tested in the D-Sand, cored in the Greenhorn formation,
which was over 75 feet thick, and side wall cores were taken in the
Niobrara and Codell formations. While the logs showed the D-Sand was
present Synergy and its partner, Vecta Oil & Gas, determined it was
not commercial. Core samples are being analyzed for prospective
horizontal development in the Greenhorn, Niobrara and Codell.
Synergy plans to drill several vertical wells on its core Wattenberg
acreage this year and has secured Ensign Rig #22 for this purpose.
Synergy will hold a conference call at 12Noon ET (10AM MT) on April
4th, 2014 to discuss results for its fiscal second quarter ended
February 28th, 2014. The company plans to issue its earnings press
release prior to the call.
Synergy Resources co-CEO Ed Holloway, co-CEO William Scaff, Jr., CFO
Monty Jennings and Chief Operating Officer Craig Rasmuson will host
the presentation, followed by a question and answer period.
Date: Friday, April 4th, 2014
Time: 12 noon Eastern time (10 a.m. Mountain time)
Domestic Dial-In #: 877-407-9122
International Dial-In #: 201-493-6747
The conference call will be webcast simultaneously which you can
access via this link: http://syrginfo.equisolvewebcast.com/q2-2014
and via the investor section of the company's web site at
Please call the conference telephone number 5-10 minutes prior to the
start time. An operator will register your name and organization. If
you have any difficulty connecting with the conference call, contact
Jon Kruljac with Synergy Resources at 970-737-1073.
A replay of the call will be available after 3:00 p.m. Eastern time
on the same day and until April 11th, 2014.
Domestic Toll-free Replay #: 877-660-6853
International Replay #: 201-612-7415
About Synergy Resources Corporation
Synergy Resources Corporation is a domestic oil and natural gas
exploration and production company. Synergy's core area of operations
is in the Denver-Julesburg Basin, which encompasses Colorado,
Wyoming, Kansas, and Nebraska. The Wattenberg field in the D-J Basin
ranks as one of the most productive fields in the U.S. The company's
corporate offices are located in Platteville, Colorado. More company
news and information about Synergy Resources is available at
Synergy Resources Corporation
Tel (970) 737-1073
Investor Relations Contact:
Synergy Resources Corporation
Tel (303) 840-8166
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