PLATTEVILLE, CO--(Marketwired - April 25, 2013) - Synergy Resources Corporation (NYSE MKT: SYRG), a Colorado based oil and gas company with assets in the Denver-Julesberg Basin and Southwestern Nebraska, expects to commence drilling operations on a four well horizontal drilling program in the Wattenberg Field in May, 2013.
Synergy has contracted with Ensign United States Drilling Inc. (Ensign) to drill 4 horizontal wells on its Renfroe lease. The wells' objectives will include both the Niobrara and Codell formations. Ensign Rig #17 will be mobilized to drill 4,900 foot lateral length wells on Synergy's Renfroe Lease and is expected to spud the first horizontal well in Mid-May.
William Scaff, Jr., Executive Vice President of Synergy, commented, "Synergy is entering the horizontal play in the Wattenberg Field at an opportune time as the play has been considerably de-risked by the major operators, best demonstrated by Ensign's willingness to offer turn-key pricing for drilling these wells. Turn-key pricing allows Synergy to plan its budget with greater certainty and efficiency. During the second half of our fiscal year our emphasis will be to transition from our vertical development drilling program to an operated horizontal development drilling program. Recent improvements in horizontal drilling technology have reduced costs and improved results. We feel that changing our primary focus from vertical drilling to horizontal drilling will enhance shareholder value."
Craig Rasmuson, Vice President of Operations, added, "We are excited to begin this phase of operations for our company. We have received approval to drill 6 horizontal wells on the Renfroe Lease and we have another 24 permits in final stages of the permitting processing with the Colorado Oil and Gas Commission. We have worked exclusively with Ensign as the drilling contractor on all of the 134 vertical wells we have drilled since inception. We look forward to our continued partnership with Ensign as we start the horizontal development of Synergy's 16,000 acre leasehold in the Wattenberg Field."
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.
Important Cautions Regarding Forward Looking Statements
This press release may contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "should," "likely" or similar expressions, indicates a forward-looking statement. These statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, and information currently available to management. 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. The identification in this press release of factors that may affect the company's future performance and the accuracy of forward-looking statements is meant to be illustrative and by no means exhaustive. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Factors that could cause the company's actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: the success of the company's exploration and development efforts; the price of oil and gas; worldwide economic situation; change in interest rates or inflation; willingness and ability of third parties to honor their contractual commitments; the company's ability to raise additional capital, as it may be affected by current conditions in the stock market and competition in the oil and gas industry for risk capital; the company's capital costs, which may be affected by delays or cost overruns; costs of production; environmental and other regulations, as the same presently exist or may later be amended; the company's ability to identify, finance and integrate any future acquisitions; and the volatility of the company's stock price.