PLATTEVILLE, Colo., June 20, 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 an update on the Company's twenty-four most recently drilled wells. As of June 20, 2012, Synergy Resources drilled and completed six Klein wells and two Hilfer wells. In addition, the Company has drilled nine wells on the Aims Community College/Greeley Country Club prospect which are currently in the completion stage. The Company also reported that Ensign Rig #233 is currently drilling seven wells on the Margil southeast prospect.
In April 2012, Synergy Resources placed five Klein wells on line; one well producing from the J-Sand formation and four from the Codell formation. The sixth well is waiting to be placed in production. First thirty-day production from the five online wells totaled 5,811 barrels of oil equivalent. The Klein and Hilfer wells are located in south half of Section 8, Township 4 North, Range 67 West and Synergy owns 96% working interest.
On June 6, 2012, the Company began producing the two Hilfer wells from the Codell formation, with ultimate production anticipated from the Codell and Niobrara formations. Initial production rates are currently being compiled.
Aims Community College and Greeley Country Club
Synergy has drilled a total of nine wells on the Aims Community College/Greeley Country Club prospect located in Section 10 & 11, Township 5 North, Range 66 West. Each of the nine wells are in various stages of completion in the Codell & Niobrara zones. By the end of July, the Company anticipates that all nine wells will be in production.Margil Southeast
On June 1, 2012, Synergy started drilling the first of seven Margil wells, and is now on its third well. The target zones are the Niobrara, Codell, Greenhorn, and the J-Sand. All seven wells are expected to be drilled by mid-July.
William Scaff, Vice President of Synergy stated, "Our Wattenberg drilling program continues to deliver positive results with strong upside potential. Upon completion of the seven Margil wells, we will have drilled a total of 47 wells under this program. As we exited May, we were producing a total of approximately 1,600 net barrels of oil equivalent per day. We plan to drill six more wells before our fiscal year-end August 31."
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