Synergy Resources Corporation (OTCBB: SYRG), an oil and gas exploration and production company, today announced that on February 26, 2010, Synergy Resources Corporation entered into an agreement with Ensign United States Drilling, Inc. to drill 20+ wells in the Wattenberg field of the Denver – Julesburg (DJ) Basin in Weld County, Colorado.
The wells will be drilled to depths ranging between 7,600 and 8,500 feet sufficient to test the Niobrara, Codell and J Sand formations. Synergy estimates that the drilling will cost between $125,000 to $180,000 per well depending on depth. Synergy will be the operator for all wells drilled.
The first well, the SRC – TK 36AD commenced drilling on March 4th and reached total depth of 7,406 feet on March 10, 2010. The well was logged and exhibited strong oil and gas shows in the Codell and Niobrara formations. The Codell showed 17 feet of pay with 14-16% porosity and the B bench of the Niobrara showed 29 feet of pay with 12% porosity. Production casing will be set. Synergy holds a 100% working interest with an 82.5% net revenue interest in the TK lease on which 5 wells will be drilled.
Synergy Resources also announced that it continues to increase its leasehold position and as of March 10, 2010 had interests in oil and gas leases covering 12,248 gross acres and 10,406 net acres.
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 has corporate offices in Platteville, Colorado and on 17th Street in downtown Denver. 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.
Contact:
Investor Relations
Andrew Barwicki
(516) 662-9461 / andrew@barwicki.com