Synergy Resources Corporation Obtains Operator Status, Secures New Oil and Gas Leases
Synergy Resources Corporation, a development stage oil and gas exploration and production company, today announced that it has been approved by the Colorado Oil and Gas Commission as an oil and gas operator in the state of Colorado.
Previous to this approval, Petroleum Management, LLC was the operator for 28 wells, permitted but not drilled, with 10 pending permits that will now all be transferred to Synergy Resources Corporation as the new operator. “This is a significant event as this allows SRC to operate its own wells and creates opportunities to operate for others,” stated Synergy Chairman, Ed Holloway.
Synergy also announced that its Gray 25-16 State Well and its Zabka State 33-15 Wells, both located in Weld County, Colorado and drilled in partnership with Kerr-McGee Oil & Gas Onshore, have been brought on line. Kerr-McGee is owned by Anadarko Petroleum Corporation, which is a NYSE traded company with a market capitalization of over $22 billion.
Information from Kerr-McGee shows initial production on the Zabka well of an average of 40 barrels of oil and 130 mcf of gas per day. The Gray well was hooked up on April 16, 2009 and reports production of approximately 40 barrels of oil and 122 mcf per day. Both wells have been completed in the Codell and Niobrara formations. Kerr- McGee Oil and Gas Onshore is the operator of each well and Synergy has a 37.5% working interest (28.125% net revenue interest) in the wells.
Synergy has also entered into new leases located in Weld and Morgan Counties, which now brings its total to approximately 6,400 net acres with terms ranging from two to ten years. This gives Synergy the potential to drill up to 100 + wells with existing leases.