Synergy’s core area of operations is in the Wattenberg Field, a very prolific oil and gas producing area where management has long-term, hands-on experience. The Wattenberg Field is in the the Denver-Julesburg Basin ( D-J Basin).
The D-J Basin is a hydrocarbon-rich area centered in eastern Colorado that extends into southeast Wyoming, western Nebraska and Kansas. Oil and gas has been produced from the D-J Basin since its discovery in 1901. It has been one of the most important producing areas in the country.
Relative to other producing regions the D-J Basin has many positive attributes that include:
- Low drilling and completion costs
- Rapid return on investment
- High level of predictability
- High drilling success rate
- Rich in drilling opportunities, including horizontal drilling in the Niobrara and Codell formations
- Long life production and reserves (~30+ years)
- Liquid-rich natural gas (high BTU content)
- Well developed pipeline infrastructure
Synergy's strategy for continued growth includes additional drilling activities, acquisition of existing wells, and re-completion of wells that provide good prospects for improved hydraulic stimulation techniques. The company attempts to maximize its return on assets invested by drilling and operating development wells in which it has a significant net revenue interest. Synergy attempts to limit its risk by drilling in proven areas. To date, the company has not drilled any dry holes. Synergy began drilling and operating horizontal wells in May, 2013 with the first production from five horizontal wells on the Renfroe Pad beginning in September, 2013 and has a total of 96 gross operated horizontal wells producing as of June 2016. The company has also participated as a non-operated working interest owner in over 130 other gross horizontal wells in the Wattenberg Field.