Synergy 'Pleased' with First Niobrara Well Results
Synergy Resources Corporation, a domestic oil and gas exploration and production company focused in the Denver-Julesburg Basin (the D-J Basin), on Thursday provided initial production rates for the Wake E24-77HN horizontal well in which the company has a 25 percent working interest. The well was drilled into the "B" bench of the Niobrara formation.
Oil production commenced on March 2, 2012, and for the initial 30 days, the well produced 11,240 barrels of oil, an average production rate of 375 bopd. For the initial 60 days, the well produced 18,472 barrels, an average production rate of 308 bopd. Gas sales commenced on March 17, 2012, and for the initial 30 days of gas sales, the well produced 31,972 Mcf of gas, an average production rate of 1,066 Mcf/d. For the initial 60 days, the well produced 75,804 Mcf of gas, an average production rate of 1,263 Mcf/d.
The Wake well is operated by Noble Energy and was the first horizontal well for Synergy. More recently, the company has participated in two horizontal wells that are being completed by another operator. Going forward, the Company has agreed to participate in five additional horizontal wells to be drilled by various operators. Drilling activities are expected to commence during the next 30 days.
"We are pleased about these results for our first participation in a Niobrara horizontal well in the Wattenberg Field. The Wake well is demonstrating characteristics of high oil and natural gas liquids production consistent with other wells in the area. The well is located in the core area of the Wattenberg Field where our interests provide us with a significant number of potential horizontal drilling locations," said Ed Holloway, chief executive officer and president of Synergy.
Holloway concluded, "Current economics in the D-J Basin are as strong as I have seen in my 30 years of working in this area."
"We are expanding our horizontal drilling activity in the Niobrara formation and we have elected to participate with other operators in eight horizontal wells where we hold working interests ranging from 6 percent to 28.75 percent." said Craig Rasmuson, vice president of operations and production for Synergy,
"The increased pace of horizontal drilling activity in the D-J Basin by numerous operators has provided us with the opportunity to witness the best practices in the industry first hand. This will be very beneficial to us when Synergy starts drilling horizontal wells on our Wattenberg leases, which we will operate and hold the majority working interest," said Rasmuson.
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