Synergy Resources Updates Ops
Synergy Resources provided an operations update. Synergy has successfully drilled 21 wells on its 35 well drilling program, of which 16 are completed and producing. Synergy is the operator of all the wells in the 35 well drilling program.
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.
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 two (2) remaining wells have all been completed and will have initial production rate tests early next week.
Synergy has also drilled five (5) Northridge wells and is currently drilling the sixth Northridge well of which Noble Energy has a 50% working interest with SYRG as the operator. The sixth well is targeting the Codell/Niobrara formation. The first four Northridge wells have exhibited pay zones in five formations including the J-Sand, Codell, and three benches of the Niobrara formation. The fifth well was targeted to the Codell and Niobrara and all formations were present.
The first five wells have shown similar log results as follows:
- The J-Sand is showing pay zones of 45-50 feet thick with 13% porosity.
- The Codell is showing pay zones of 16-18 feet thick with porosity ranging from 19% to 21%.
- The three benches of the Niobrara are all present in all five wells with 14-19% porosity in the B bench and 14-17% in the A & C benches.
Upon completing the drilling of the six Northridge Wells, Synergy will be moving to the SRC State well prospect and will commence drilling nine (9) wells.
Four (4) Weideman wells were completed in the last week in January. Cumulative gross production for the Weideman wells and the four (4) Meyer wells, which were completed in mid-April, was 99,996 mcf of gas and 9,506 barrels of oil for a total of approximately 26,000 BOE thru April 30, 2010.
Ed Holloway, Chairman and CEO of Synergy, commented, "We continue to be encouraged with the recent results of our drilling program and we remain on schedule to drill 35 wells by the end of the summer 2010. We are reporting initial production rates using different test periods due to the varied formations we are producing from on several different leases. While the market and our investors have been eager to see the initial production rates, a better gauge of our performance will be cumulative production rates that we will release on a quarterly basis. We remain focused on executing our drilling plan and increasing our footprint. Recent results of the Colorado State land auction, where lease rates exceeded $2,000 per acre in Weld County where we hold most of our current acreage, serves to confirm the value of Synergy's assets."
Synergy continues to increases its acreage position in the Denver – Julesburg Basin with 13,461 gross acreage and 11,118 net acres under lease.