Synergy amends drilling contract with Ensign

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Synergy Resources has amended its drilling contract with Ensign, which was signed in April 2013, to drill four horizontal wells in the Wattenberg field.

The amended contract has increased the size of the drilling program to 25 wells. The company is now drilling the Renfroe 42-1-36CHZ, the fifth well of its 25 horizontal well program, with Ensign Rig #17.

In early August, the rig will move from the Renfroe pad to the Leffler pad to drill six horizontal wells on the Leffler lease.

Synergy executive vice-president William Scaff said, “This contract will enable us to begin execution of our recently announced $157.5 million fiscal 2014 capital expenditure budget.”

Synergy operations vice-president Craig Rasmuson said, “The drilling on our Renfroe pad has been conducted according to plan and we are now finalizing our completion plans for the Renfroe wells which we expect to begin in mid-August.”

“Meanwhile, we have begun preparing the Leffler pad site for drilling, including the placement of the tank battery and other production equipment,” Rasmuson added.

“We are continuing to permit horizontal wells in the Wattenberg Field and currently have 31 permits approved.”

 

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