Craig Rasmuson, COO
Thanks, Monty. Synergy is in position of great operating flexibility as we have no long-term drilling contracts. Also, our leasehold in the Wattenberg is largely held by production. We feel we can maintain our assets with operating one drilling rig going forward and still reach our goals for fiscal 2015 given the increased operating and drilling efficiencies we have been achieving.
We recently completed drilling our Wiedeman and Geis wells and we have released those two rigs. We currently have one rig drilling, the final well on our Weis pad. That rig will then move to our Cannon pad to spud the first of the 11 wells planned on this pad. We have a 100% working interest in the Cannon wells. Upon finishing drilling the Cannon wells, we will drill 46 operated horizontal wells in the Wattenberg field this fiscal year, which is inline with the revised drilling schedule we discussed in the press release a few weeks ago.
We have been working on reducing cost across our entire operating platform and our preliminary AFE Cannon wells is 3.3 million for standard length laterals with 22 frac stages. We continue to analyze where we can realize cost savings and our goal to reduce [inaudible] well cost of three million or less for the standard length lateral well by the end of the calendar year.
We can complete the 29 wells that we have drilled on the Wiedeman, Geis and Kiehn/Weis pads at our discretion. That discretion will be driven by generating a return on our capital that meets our criteria. Given the current low commodity prices, we are delaying the completion on these wells until later this year and will not be bringing on any new production in the fiscal second quarter ended February 28. This delay will impact our guidance for 2Q by 300 to 500 BOEs a day. That guidance was 8,800 to 9,400 barrels a day.
We are also experiencing severe line pressure and other midstream processing issues in our Northern Wattenberg acreage, which has impacted the production on some of our recently completed horizontal wells including the Kelly Farms and Weld 152 pads. Well, some of these issues can be attributed to extremely cold weather we have experienced over the holidays, most of the impact as a result of capacity constraints. Increased processing capacity is scheduled to be operational by our midstream partner by mid-2015. The exact timing of this expansion in processing capacity will factor into when we complete some of the wells we have already drilled.
On the other hand, we are enjoying a better midstream situation for our wells in the Western and Southern portions of the Wattenberg Field. The 13 wells on the Kiehn/Weis pad and the 11 wells planned on the Cannon pad are in the Western flank of the Wattenberg. The asset we recently acquired is strategically located in the Southern portion of the field or infrastructure and lower line pressures enable more efficient production. We will take these and other factors into account before we begin the next round of well completions. Outside the core of Wattenberg, we are finalizing our plans on the horizontal Greenhorn prospect and expect to spud the initial well in the third quarter of fiscal year. On the Nebraska acreage, our partners are planning to begin activities over the next 30 to 45 days.
I would like to turn the call over now to Ed Holloway, our Co-CEO. Ed?
