Synergy Resources Corporation, a domestic oil and gas exploration and production company focused in the Denver-Julesburg Basin (the "D-J Basin"), provided an update on the Company's recently drilled wells at its prospects known as the Margil, Haythorn, Cletcher, and Leffler.
On its DeClar farm-in, Synergy has drilled, completed and brought on-line six-wells at the first Margil drill site. The six wells produced 212 barrels of oil equivalent per day during December 2011, the first full month of production. All six wells were drilled to the J-Sand. Four of the six wells were completed in the Codell, one well was completed in the J-Sand, and one well was dually completed in the Codell / Niobrara formations. The dual completion well is currently producing from the Niobrara formation and the Codell formation is behind a bridge plug. Due to weather and right-of-way issues affecting pipeline construction, the Company encountered slight delays on first production which was expected during the last week of October 2011; however, the six Margil wells are currently flowing into the pipeline with no constraints. Synergy holds a 100% working interest (WI) and an 80% net revenue interest (NRI) at the Margil six-well prospect.
At the second Margil drilling location, all five wells were drilled to the J-Sand and completion activities are underway. Synergy expects first production from the five-well Margil prospect in February 2012. The Company owns a 100% WI and an 80% NRI on the prospect.
Haythorn Five-Well Prospect Sees First Production
All five Haythorn wells were successfully drilled and completed in the Codell formation. The five wells commenced production during the first week of January and initial "30-day" results will be available in February. Synergy owns a 100% WI and 82% NRI in the wells.
First Production from Cletcher and Leffler Prospects Expected During Second Fiscal Quarter
Synergy has successfully drilled all three Cletcher wells to the J-Sand. The three wells are currently scheduled for first production in February when the gas gathering line is expected to be completed. Synergy holds a 100% WI and an 83% NRI at the Cletcher three-well prospect.
All four wells at the Leffler prospect have been drilled to total depth. Synergy expects to complete the wells later this week, and anticipates first production during the last week in January 2012. Synergy holds a 100% WI and an 81% NRI at the Leffler four well prospect.
Craig Rasmuson, Vice President of Operations for Synergy Resources, said, "Our operations team continues to execute on our drilling and completion objectives. During 2012, we expect to drill and complete 46 wells in the D-J Basin, and to date, we have drilled 23 of those wells. All five of the locations that we mention today mark significant milestones on our way to meeting those objectives. Our inventory of drilling opportunities, primarily in the Wattenberg Field, coupled with our plans to co-mingle individual formations, are expected drive revenues and returns for our shareholders during 2012."
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