The wells will be drilled to depths ranging between 7,600ft and 8,500ft 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 4 and reached total depth of 7,406ft on March 10, 2010. The well was logged and exhibited strong oil and gas shows in the Codell and Niobrara formations.
The Codell showed 17ft of pay with 14-16% porosity and the B bench of the Niobrara showed 29ft of pay with 12% porosity. The 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 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.
