Synergy Resources Corporation has entered into a turn-key drilling contract with Ensign Drilling Company of North America (Ensign) for a third automated drilling rig (ADR) to drill a minimum of eight horizontal wells on Synergy's Wiedeman lease. Synergy has the option to retain the additional rig on a pad by pad basis going forward. Synergy has also extended its turn-key drilling contract with Ensign for Rig #134 through December 31st, 2014. Ensign Rig #131 remains under its original contract terms with Synergy through the end of 2014.
Craig Rasmuson, Chief Operating Officer of Synergy, commented, "We are very pleased to announce the expansion and extension of our turn-key drilling contracts with Ensign. As our activities in the Wattenberg Field increase, it is important to secure these ADR rigs which are more cost and time efficient than conventional rigs. Also, the ADR rigs run on natural gas reducing the noise and environmental impact."