Synergy Resources Corporation Provides Update on Drilling Activity in the Wattenberg Field

DENVER, Aug. 17, 2011 /PRNewswire/ -- Synergy Resources Corporation (NYSE Amex: SYRG), a domestic oil and gas exploration and production company focused in the Denver-Julesburg Basin (the "DJ-Basin"), today provided an operating update on its previously announced Pratt drilling program and has also begun drilling operations on the DeClar Oil & Gas farm-in acreage in the Wattenberg Field.

Synergy has successfully completed and reported initial production rates on three of its Pratt wells.  Initial production rates on the three wells include the following:

• The Pratt 24-29D Codell formation had an initial production rate that totaled 129 barrels of oil, 374 thousand cubic feet of natural gas and 66 barrels of water in the 24 hour period.  
• The Pratt 14-29D Codell formation had an initial production rate of 136 barrels of oil, 439 thousand cubic feet of natural gas and 66 barrels of water in the initial 24-hour period.  
• Pratt 13-29D J Sand formation produced 238 thousand cubic feet of natural gas in the initial 11 hour period.  

Craig Rasmuson, Head of Field Operations for Synergy Resources, said, "These initial results, combined with our previous successes in the play, are encouraging.  Management believes that the Company's inventory of low-cost, prospects will bode well for the Company.  We anticipate placing the remaining five wells onto the sales pipeline before the month's end.  Regarding Pratt 13-29D, we will continue to produce in the J-Sand formation until we capture the incremental drilling costs, at which time, we'll move up-pipe to produce the Codell formation and book the subsequent reserves."

On the DeClar Oil & Gas farm-in acreage, announced earlier this month, the company has drilled two wells and is presently drilling the third well of its six (directional) wells to be drilled. The wells are targeting the J Sand, Codell and Niobrara Formations in the oily and liquid-rich region of the Wattenberg Field. All six wells are on schedule to be drilled by mid-September.

Synergy continues to grow its acreage, the majority of which is located in the DJ-Basin.  As of August 12, 2011, Synergy Resources has approximately 170,000 gross acres and 149,000 net acres under lease.

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 DJ-Basin ranks as the 7th largest field in the U.S. in terms of proved gas reserves and 9th in production. Synergy's corporate offices are located in Platteville, Colorado.  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.

SOURCE Synergy Resources Corporation

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED