Synergy Resources Corporation commenced its operated horizontal drilling program on May 16th with the rigging up of Ensign Rig #17 to begin drilling the SRC Renfroe 32-1-36NHZ well on its Renfroe lease in the Wattenberg Field. Synergy's initial plan is to drill five wells from one pad site on the Renfroe lease comprised of three Niobrara and two Codell wells. The wells will be approximately 4,700 feet in lateral length and Synergy anticipates there will be between 16-20 frac stages per lateral. All the wells are being drilled under the terms of a turnkey contract with Ensign United States Drilling.

William Scaff, Jr., Executive Vice President of Synergy, commented, "We are excited to begin Synergy's operated horizontal drilling program at a time which we feel is ideal for the company as the returns on investment in the Wattenberg Field rival those of any other resource play in the United States. The industry is still in the early stages of unlocking the potential of the Niobrara and Codell formations in the Wattenberg Field as different spacing densities within multiple formations are still being delineated. We remain active on a non-operated basis, having participated in ten producing horizontal wells to date. We also have a working interest in four more wells currently being drilled and have been notified on another fifty potential horizontal wells that will be drilled by other companies including Noble Energy, PDC Energy, Bill Barrett Corp., Carrizo and others. With this experience in hand, combined with utilizing service providers that have been working with the largest operators in the play, Synergy's goal is to drill and complete horizontal wells in the Wattenberg Field at lower than industry average historical costs."

Tags: Synergy Resources Corporation