During its second fiscal quarter, which ended Feb. 28, Platteville, CO-based independent Synergy Resources Corp. continued its 100% success rate in the Wattenberg Field in the Denver-Julesberg (DJ) Basin. Synergy recently struck a joint venture (JV) agreement in the DJ Basin as well.
During the second quarter, Synergy completed and brought into production 22 vertical wells in the Wattenberg. Of these, 20 were completed in the Codell formation, one commingled in the Codell/Niobrara, and one in the Greenhorn formation. Six of the wells were brought into production during December and January while the remaining 16 came online during the third week of February. Synergy has a 100% working interest in the wells.
"We continue to achieve 100% success rate in our vertical drilling program. All twenty seven wells we drilled and completed in this fiscal year's program are now in production," said Craig Rasmuson, vice president of operations. We look forward to beginning our operated horizontal drilling program in the third and fourth quarter."
Synergy also participates in vertical and horizontal wells as a nonoperator with various operators throughout the DJ Basin in Colorado, Wyoming, Kansas and Nebraska. The company recently struck a JV with Vecta Oil & Gas Ltd. to jointly develop oil and gas leases in Morgan & Weld counties, CO. Synergy and Vecta will each contribute acreage to the JV, which will delineate two areas of mutual interest. In the first area, covering 45,661 net acres, Synergy will have a 35% working interest, and in the second area, covering 2,983 net acres, Synergy will have a 65% working interest. Synergy will be the operator of both areas.
Synergy and Vecta plan to acquire new proprietary seismic data across a portion of the oil and gas JV leases. Synergy will drill a horizontal well on one of the leases to evaluate either the Greenhorn or Niobrara Shale, the company said, and will also conduct other exploration projects in the area covered by the leases as may be mutually agreed upon. The JV contemplates an initial Greenhorn well by Oct. 31.
With the JV, Synergy's net acreage position in the Wattenberg Extension Area has increased by thirty six percent (36%) to approximately 19,400 acres.
Noble Energy is the largest acreage holder in the Wattenberg with 410,000 net acres. Rounding out the top five are Anadarko Petroleum (350,000 net acres), PDC Energy (99,000 net acres), Encana (48,000 net acres) and Bonanza Creek Energy (30,800 net acres), according to company reports.
"The Extension Area is rapidly becoming one of the most actively drilled areas of the DJ Basin, and recent results announced by other operators are exhibiting compelling returns on invested capital," said Synergy CEO Ed Holloway.