Synergy Resources, www.synergyresourcescorporation.com – the US-focused oil and gas firm with primary assets in the Denver-Julesburg Basin (Colorado, Wyoming, Kansas, and Nebraska), reported excellent initial results for a 24-hour flow testing session on eight wells at its “State Lease” today where SYRG operates all the wells and holds a 75% working interest.
A statistical breakdown of these initial results can be found here.
CEO of SYRG, Ed Holloway, took a moment to comment on these extremely promising results, which exceeded expectations, and characterized the data as justification of the Company’s strategy to develop an exploration and production portfolio centered on the D-J Basin characterized by high-yield and steady growth.
Holloway noted that the wells were not only drilled and completed on schedule, but came in under cost, a tribute to the masterful implementation for which the Company has become known, allowing it to project returns which go far beyond previously determined targets if commodity prices remain stable at current levels.
Holloway pointed to recent success with horizontal drilling operations in the Niobrara formation by major sector players as further evidence of the validity of the D-J Basin as a major production site.
The Company shrewdly elected to avoid completion of any Niobrara formation wells in order to maximize the production potential of horizontal drilling and, while initial J-Sand Formation data may appear modest, drilling and completion costs will be easily met by output.
Furthermore, the low decline rate of the J-Sand will translate into substantial long-term profitability and sustained revenues as three J-Sand completed wells are characterized by Codell/Niobrara reserves behind pipe which can be completed at a future date.
Holloway seemed extremely pleased by the progress of the 36-well program, and further indicated that the Company has every intention of increasing Wattenberg Field/D-J Basin holdings, citing in particular the proven status of the Wattenberg as the 7th largest domestically in terms of reserves and 9th in terms of production.
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