Sharon Dunn | The Greeley Tribune, Colo.
Platteville-based Synergy Resources Corp. is finally jumping into some exploration opportunities in western Nebraska.
The company in the coming months will partner with two other oil and gas exploration companies to drill wells and develop acreage in Nebraska. Company officials have been watching the area for a couple of years now, waiting for the right time to get in the game.
The partnership agreement, with Kodiak Petroleum and Johnson Production Corp., both Colorado companies, is for 10 wells to be drilled across 8,011 acres in western Nebraska, according to a news release from Synergy Resources.
The company plans to spend $10 million in the next fiscal year, which begins Sept. 1, on its Nebraska drilling, a fraction of its overall capital spending budget.
Overall, the company plans to spend $200 million to $225 million on its drilling program, 89 percent of which will be spent in the Wattenberg Field, which encompasses most of Weld County.
“We are anxious to begin the development of our Nebraska assets with this agreement with JPC,” said Ed Holloway, Synergy’s co-CEO, in a news release. “We have been closely monitoring the increasing success by other operators in this area and believe this is an opportune time to begin deploying drilling capital to these assets. This is a conventional, shallow oil play with low drilling and completion costs for vertical wells.”
Holloway adds in the release, “It is the first step in the long-term plan for the development of these assets. We have an additional 36,000 net acres surrounding the contract area with JPC in Dundy County, and approximately another 130,000 acres in nearby counties in Nebraska. … We plan on submitting for permits and begin drilling the first well in the next few months.”
According to a company presentation, Synergy could be sitting atop 40,000 to 50,000 barrels of oil equivalent (oil, natural gas and natural gas liquids) per well in its Nebraska leasehold.
Synergy has been focused on the Wattenberg since its inception in 2008. The company has amassed more than 53,000 acres from which to drill in northern Colorado, and it added a third rig to its drilling program this month.
Synergy’s core area of operations is in the Denver-Julesburg Basin, which encompasses Colorado, Wyoming, Kansas and Nebraska.
This article was written by Sharon Dunn from Greeley Tribune, Colo. and was legally licensed through the NewsCred publisher network.