Synergy Resources Completes 36-Well Drilling Program
Synergy Resources announced the completion of drilling of its 36 well program with a 100% success rate. Of the 36 wells drilled, 22 wells are completed and producing and 14 wells are in the completion stage. Synergy expects all wells to be completed and producing by September 10, 2010. Synergy is the operator of all the wells. The cumulative production on the 16 wells that were producing thru June 2010 is 61,075 BOE (barrel of oil equivalents) with an approximate gas to oil ratio of 6 to 1.
Synergy has completed the two (2) remaining Meyer wells of the initial seven (7) wells drilled. The SRC Meyer #2, producing from the A, B & C benches of the Niobrara Formation, initial 90 minute production test flowed at a rate of 26 barrels of oil equivalent (BOE), while the SRC Meyer #4, in the J-Sand formation, initial 16 hour production test yielded a rate of 40 BOE. Synergy holds a 62.5% working interest in all seven Meyer wells.
SRC Wiedeman Wells
Four (4) Wiedeman wells were completed in the last week in January. Cumulative gross production for the Wiedeman wells and the four (4) Meyer wells, which were completed in mid-April, was 169,492 mcf of gas and 15,652 barrels of oil for a total of approximately 39,332 BOE thru June 30, 2010.
SRC TK Wells
Synergy has drilled and completed five (5) TK Wells. The TK Wells are mainly oil wells with low gas to oil ratios. The TK 11-36D initial 12 hour production test flowed at a rate of 143 BOE, the TK 22-36D initial 12 hour production test flowed at a rate of 111 BOE, and the TK12-36D initial 12 hour production test flowed at a rate of 69 BOE. The TK 36AD after setting tubing, test flowed at a rate of 54 BOE and the TK 21-36D initial 12 hour production test flowed at 74 BOE. The TK wells were all brought on line in June 2010.
SRC Northridge Wells
Synergy has also drilled and completed the six (6) Northridge wells. The six wells comprise two (2) J-Sand wells, three (3) Codell wells and one (1) Niobrara well.
SRC State Wells
Synergy has drilled, logged and completed eight (8) state wells of which three (3) wells exhibit pay zones in five (5) formations including the J-Sand, Codell and three benches of the Niobrara formation. The remaining five (5) wells are Codell/Niobrara wells with all four (4) pay zones present.
All three (3) J-Sand wells exhibited 30 to 40 feet of greater than 8% to 10% porosity with 30-44 ohms.
The Codell wells exhibited 20 to 23 feet of pay with greater than 10% and as high as 18% porosity.
The three (3) benches of the Niobrara were represented in all eight (8) wells with 30-45 ohms and 11% to 13% porosity.
All eight (8) SRC State wells will be hooked up to pipeline and producing by the first week in September.
SRC M&T Farm Wells
Synergy completed the drilling of all six (6) M&T wells on August 18, 2010. Four (4) wells were drilled to the Codell/Niobrara formation and two (2) wells were drilled to the J-Sand formation with Codell/Niobrara present above the J-Sand.
The Codell wells exhibited 14 feet to 17 feet of greater than 10% to 16% porosity with the Niobrara formation exhibiting up to 105 ohms and 10% to 13% porosity. All three (3) benches of the Niobrara were present.
The two (2) J-Sand wells both exhibited 45-60 ohms with 10% to 14% porosity and good neutron log x-over. Completion (fracing) of these six wells is scheduled to be completed by September 4, 2010 and production should start within a few days after completion.
William Scaff, Vice President and Director, remarked, "The 100% success rate of the 36 wells of our drilling program has been quite an accomplishment, and we are very pleased. The initial production numbers have been gratifying and we remain confident the remainder of the wells will produce in a similar fashion. It is great to know that as we continue to grow our acreage in the DJ Basin, we clearly have the operational team to execute our overall vision. We look forward to providing updates towards this success."