DENVER, Aug. 9, 2011 /PRNewswire/ -- Synergy Resources Corporation (NYSEAmex : SYRG ), a domestic oil and gas exploration and production company focused in the Denver-Julesburg Basin (the "DJ-Basin"), today announced that it has entered into a farm-in agreement with DeClar Oil & Gas for development on certain Wattenberg field properties.
Under terms of the agreement, Synergy Resources interest in the wells is 100% working interest with net revenue interest of 80% across 23 (directional) drill sites and two horizontal Niobrara wells located in the oily and liquid-rich region of the Wattenberg Field near Mead, Colorado.
Ed Holloway, Chief Executive Officer and President of Synergy Resources, said, "The strategic farm-in agreement with DeClar Oil & Gas further strengthens our position in the oil and liquids rich portion of the Wattenberg field while adding to our drilling inventory. We've received the necessary approvals from the town of Mead on July 25th and immediately engaged Ensign Rig #33 to drill wells targeting the J Sand, Codell and Niobrara Formations. We began drilling the first of six (directional) wells to fulfill the farm-in agreement on August 2, 2011. We anticipate that all six wells will be drilled by mid-September."
Holloway continued: "The farm-in agreement complements our focus on the oil and liquids portion of the Wattenberg field. Separate from the DeClar farm-in agreement, we also received approval from the City of Greeley on July 26, 2011 to drill 15 additional wells in the J Sand, Codell and Niobrara formations of which 11 will be directional and 4 potential horizontal on the Aims College Prospect. We expect this drilling program to commence later this fall."
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 ranks as the 7th largest field in the U.S. in terms of proved gas reserves and 9th in production. Synergy's corporate offices are located in Platteville, Colorado. More company news and information is available at www.SYRGinfo.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.
SOURCE Synergy Resources Corporation