Bringing Down Breakeven Costs How to Survive and Thrive DUG Conference Mike Eberhard, P.E. Denver, CO VP of Completions March 10, 2016
Wattenberg Focus Synergys Acreage Position in the Greater Wattenberg Area Focus on Core Wattenberg Area 41,000 Net Acres NE Wattenberg Extension Area 52,000 Net Acres Synergy Leasehold www.syrginfo.com 3 Note: Offset…
Core Wattenberg Operated HZ Wells Focus is shifting to longer length laterals DUC inventory Weideman Pad 4 LL wells and 4 SL wells Fagerberg Pad Vista Pad 10 SL wells Evans Pad Current 2016 drilling program Fagerberg Pad (14 ML…
Rapidly Growing Reserves and Production 60,000 Daily Net Production 57 MMBoe * 50,000 10,540 Reserves MMBoe 8,725 40,000 32 MMBoe BOEPD 30,000 20,000 4,290 10,000 0 8/31/2014 8/31/2015 FY 2014 FY 2015 Q1…
Recent Changes at Synergy to build a successful organization and team you must get the right people on the bus... Jim Collins, Good to Great New management team Development of in-house technical expertise Communication across…
We cannot drill our way to lower prices at the pump US Senate Democratic newsletter; June 18, 2008 and you know we cant just drill our way to lower gas prices. Barack Obama Feb 23, 2012 1/82 2/86 10/08 1/91 3/98 9/01 133.93…
We cannot drill our way to lower prices at the pump US Senate Democratic newsletter; June 18, 2008 and you know we cant just drill our way to lower gas prices. Barack Obama Feb 23, 2012 1/82 2/86 10/08 1/91 3/98 9/01 133.93…
How Do We Survive Maintain a strong balance sheet Look for opportunities that make sense Emphasis on base production Evaluate D&C costs vs. well performance High grade vendors Look across the fence to learn Access to higher cost…
Capital Preservation Maintain a strong balance sheet Evaluate all expenses for want vs. need Detailed portfolio projects economics o Incorporate lease hold requirements, pipeline commitments, etc. Continuous evaluation of vendor…
Growth Through M&A Core up acreage SRL MRL LRL Allows for more medium to long laterals o Better economics o Fewer surface locations Provides more surface location options Be realistic about well performance 920 Dont fall in love…
Base Production Company pumpers for horizontal wells Compensation based on performance Track base production - KPI Communicate to field Analysis of downtime causes Evaluate cost of gas lift May cost more than the increased oil…
Evaluate D&C Costs vs Well Performance What made sense at 100 oil may not work at 30 oil Need tangible results from spend Re-evaluate completion designs that may not be optimum Reduced cost may offset the lower production Niobrara…
High Grade Vendors Relationships with past vendors are important but Opportunity to improve where needed Safety is still number one o Vendors making cuts to keep margins Improve on efficiency to reduce cycle times and cost o Reduce…
Look Across the Fence Learn from other operators Available time to do a deep dive into offset well performance Time to go back and look at what you did Why is this well so good/bad What can you learn from trouble job wells Continue…
Access to Higher Cost Technology Service providers still want to prove up technology Shared risk/reward Fixed pricing for higher risk services Willingness to provide extra services for work Previously upsold services Easier access…
Continue to Innovate Not all innovations result in reducing cost Improve EUR Process improvement Time to look at operations in more detail Efficiency savings last even when prices increase Integrated project evaluation…
Issues Pipelines continue to be a problem Capacity, line pressure, oxygen Regulations continue to add cost Air OOOO has added several layers to operations Noise Price differential NO State and local regulatory changes Setbacks,…
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