Attached files
EXHIBIT 99.1
Synergy Resources Provides Operational Update and 2nd Quarter Conference Call
Details
Synergy Resources Corporation (Synergy) has expanded its contract with Ensign
United States Drilling Inc. (Ensign) to include a second automatic drilling rig
(ADR) to execute the horizontal development of its leasehold in the Wattenberg
Field. Synergy believes that a two rig drilling program utilizing ADR rigs will
be instrumental in accelerating horizontal development going forward. The ADR
rigs have several advantages over conventional rigs, including the capability of
drilling mid and extended reach laterals, reducing the environmental footprint
by using natural gas instead of diesel fuel, noise abatement and creating
efficiencies in leasehold development. Synergy has secured Ensign Rig #134, an
ADR rig, as a replacement for Ensign Rig #17. Rig #134 has spudded the first of
six horizontal wells planned for the Eberle pad. On the Eberle pad Synergy
intends to drill 2 Niobrara B wells, 1 Niobrara C well and 3 Codell wells.
Furthermore, the plans call for two of the wells to be 7,100 feet mid-reach
lateral horizontal wells.
Ensign Rig #17 has finished drilling the Phelps pad however, due to severe
weather in January and mechanical difficulties with the rig the Phelps pad is
approximately thirty days behind schedule. Completion is scheduled in late March
and Synergy believes production will begin during May. Three of the wells will
be completed using the plug and perf method and three wells will be completed
using sliding sleeves. Synergy used the sliding sleeve technology on its first
eleven horizontal wells.
On Synergy's Union pad Ensign Rig #131 is currently in the final stages of
drilling the fourth of six wells planned. Drilling on the Union pad is going
according to schedule and Synergy anticipates the wells will be completed in May
and in production in June. The Union wells consist of a mix of Niobrara and
Codell wells. When finished drilling the Union pad Ensign Rig #131 is scheduled
to move to Synergy's Kelly Farms lease in the Greeley area to drill four
horizontal wells.
On Synergy's Renfroe pad the wells have been on production for six months and
the average daily production for the two Codell wells is 280 BOEs and the three
Niobrara B wells is 230 BOEs. The production has consisted of 68% oil and 32%
natural gas. Current pay back status is 66% after the first six months of
production.
Production on Synergy's Leffler pad didn't begin until the third week of January
due to DCP Midstream's Eaton gas processing plant repairs. This forced shut down
occurred during flow back of the Leffler wells and the completion fluids
remained on the formation for nearly four weeks. Once the Eaton plant was
operational the 30 day average production for the six wells on the Leffler pad
was over 300 BOE per day per well. Synergy has recently increased the
compression capacity on the Leffler pad to handle higher than anticipated gas
volumes from the wells.
Synergy has recently completed the drilling and testing of the Buffalo Run well,
a vertical well in the Wattenberg extension area. The well was tested in the
D-Sand, cored in the Greenhorn formation, which was over 75 feet thick, and side
wall cores were taken in the Niobrara and Codell formations. While the logs
showed the D-Sand was present Synergy and its partner, Vecta Oil & Gas,
determined it was not commercial. Core samples are being analyzed for
prospective horizontal development in the Greenhorn, Niobrara and Codell.
Synergy plans to drill several vertical wells on its core Wattenberg acreage
this year and has secured Ensign Rig #22 for this purpose. Synergy will hold a
conference call at 12Noon ET (10AM MT) on April 4th, 2014 to discuss results for
its fiscal second quarter ended February 28th, 2014. The company plans to issue
its earnings press release prior to the call.
Synergy Resources co-CEO Ed Holloway, co-CEO William Scaff, Jr., CFO Monty
Jennings and Chief Operating Officer Craig Rasmuson will host the presentation,
followed by a question and answer period.
Date: Friday, April 4th, 2014
Time: 12 noon Eastern time (10 a.m. Mountain time)
Domestic Dial-In #: 877-407-9122
International Dial-In #: 201-493-6747
The conference call will be webcast simultaneously which you can access via this
link: http://syrginfo.equisolvewebcast.com/q2-2014 and via the investor section
of the company's web site at www.syrginfo.com.
Please call the conference telephone number 5-10 minutes prior to the start
time. An operator will register your name and organization. If you have any
difficulty connecting with the conference call, contact Jon Kruljac with Synergy
Resources at 970-737-1073.
A replay of the call will be available after 3:00 p.m. Eastern time on the same
day and until April 11th, 2014.
Domestic Toll-free Replay #: 877-660-6853
International Replay #: 201-612-7415
Replay ID#411931
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 one of the most productive fields in the U.S.
The company's corporate offices are located in Platteville, Colorado. More
company news and information about Synergy Resources is available at
www.syrginfo.com. Download PDF
Company Contact:
Rhonda Sandquist
Synergy Resources Corporation
Tel (970) 737-1073
Email: rsandquist@syrginfo.com
Investor Relations Contact:
Jon Kruljac
Synergy Resources Corporation
Tel (303) 840-8166
Email: jkruljac@syrginfo.com
Source: Synergy Resources Corporatio
