Synergy Resources, the domestic oil and gas developer currently focused on the D-J Basin (Denver-Julesburg) at the massive Wattenberg field, where the Company is executing its field development plan, has released new information detailing status updates on the Cletcher, Haythorn and Margil drilling programs.
CEO of SYRG, Ed Holloway, outlined the good news for investors, explaining that plans were proceeding apace of expectations and that, not only does the track record leading up to this most recent report clearly confirm the success of the Company’s Wattenberg field strategy, the decision to focus on individual formations is a superb methodology. SYRG likes to complete/produce a specific formation and then set a bridge plug (downhole tool used to isolate the formation below a certain point in the wellbore), later moving up-pipe to the next formation. Holloway explained this workflow, pointing out that most of the costs are incurred in that initial phase and this creates a very clear breakdown of logistics after the final co-mingling of all production across all formations in order to maximize shareholder returns.
Holloway was very pleased at the 100% success rate of the 13 wells drilled thus far in 1Q 2012 and projected exiting 1Q with some 20 or more wells put in. Perhaps of greater significance still is the sharp increase in overall working interest held by the Company in the wells it is currently drilling, as in previous years the WI captured by SYRG was relatively small. The Company has shifted focus to projects where values approaching 100% WI can be obtained readily and the eventual economy of scale force this produces.
Let’s take a closer look at the data offered in this most recent report and go over the details of operations at Cletcher, Haythorn and Margil:
Cletcher
Three-well program, 100% WI (82.5% net revenue interest), all three wells successfully drilled to target in the J-sand formation and determinations/analysis of which formations to complete is underway – completion scheduling is ready to go and is merely pending confirmation of gas line right-of-way.
Haythorn
Five-well program, 100% WI (82% NRI), four wells drilled and the fifth slated to reach its target by Oct. 20 (all Codell formation), with well completion for all five scheduled for the second week of November.
Margil
The Declar Farm-in is the site for these six wells, 100% WI (80% NRI), five of six wells are done (four in the Codell and on in the Codell/ Niobrara A-B benches) and the final well is slated to be drilled to target depth by the middle of October (targeting the J-sand) – all six wells are slated to begin production the week of Oct. 24, sans any gas pipeline hook-up complications.
To keep up with the latest news and to find out more about Synergy Resources Corp., please visit the Company’s website at: www.SYRGinfo.com
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