PLATTEVILLE, Colo., May 31, 2012 /PRNewswire/ -- Synergy Resources Corporation (NYSE MKT: SYRG), a domestic oil and gas exploration and production company focused in the Denver-Julesburg Basin (the "D-J Basin"), today provided initial production rates for the Wake E24-77HN horizontal well in which the Company has a 25% 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 barrels per day. For the initial 60 days, the well produced 18,472 barrels, an average production rate of 308 barrels per day. 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 per day. For the initial 60 days, the well produced 75,804 mcf of gas, an average production rate of 1,263 mcf per day. 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.
Ed Holloway, Chief Executive Officer and President of Synergy, commented "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. Ed 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."
Craig Rasmuson, Vice President of Operations and Production for Synergy, said, "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% to 28.75%. 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."About Synergy Resources Corporation Synergy Resources Corporation is a domestic oil and natural gas exploration and production company. Synergy's core area of operations is in the Denver-Julesburg Basin, which encompasses Colorado, Wyoming, Kansas, and Nebraska. The Wattenberg field in the D-J Basin is one of the most prolific production areas in the United States. Synergy's corporate offices are located in Platteville, Colorado. More company news and information is available at www.synergyresourcescorporation.com. This press release may contain forward-looking statements. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.
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