Ed Holloway, President, Co-CEO
Thank you, Craig and good morning everyone. I would like to conclude the call by highlighting Synergy’s current position and our approach to managing the company going forward. As mentioned during the call, Synergy is in an enviable position of having both operational and financial flexibility and we can choose when or where to spend our capitals. We are not interested in growing production for the sake of production growth if that growth doesn’t create value for our shareholders.
We are in the early phases of our horizontal development of our assets and we can recapture peak production in growth rates rapidly when prudent to do so as most of you know the production profile of these wells in the Wattenberg Field is heavily skewed to the first six to 12 months of production. We are not going to realize that economic return on initial production just to meet production expectations. Rather, we are working diligently to reduce cost, so that as we complete the bulk of the wells in our fiscal 2015 plan, we can bring them on in a scenario that generates an acceptable rate of return for the company and its shareholders.
This is our first raw deal and we successfully managed through several of these privileged downturns. We are highly confident that we prudently manage our assets today. We will be a stronger company coming out of this low commodity price environment in the future. I would now like to return the call over to the operator to conduct the Q&A. Jessie?
Question and Answer Session:
Operator
Thank you. At this time, we will be conducting a question-and-answer session. (Operator Instructions). Thank you. Our first question comes from the line of Mike Kelly with Global Hunter Securities. Please proceed with your question.
Mike Kelly, Global Hunter Securities
Hi, guys. Good morning.
Ed Holloway, President, Co-CEO
Hey, Mike. Good morning.
Mike Kelly, Global Hunter Securities
I was hoping just for a little bit more color and thought around decision to hold back sort of these wells online. What determines when you turn these things on — put them online if there is some sort of threshold there whether its price and how you would layer these engines from a modeling standpoint would be helpful. Thanks.
Ed Holloway, President, Co-CEO
Well, Mike. This is Ed. For one thing, the pricing scenario, we have drilled these wells so about a third of the cost of drilling and completing into the drilling phase. Two-thirds of the cost is in the completion side of things. I feel the earlier stages of negotiating all those costs — I think people are finally falling in line and we have gotten quite a few concessions going forward. I think we will continue to do that. Waiting is not really going to hinder us in our development on that side.
The other thing is the cycles run in a pattern where — in times if you rush your timing, like I said in the call the price production in that first six to 12 months is very critical. They hit a certain threshold and we are modeling that out as we speak. Then the other thing is basically timing of those cost, Mike. We are working with vendors to talk about getting paid with longer credit terms basically making sure that we are holding on to as much working capital as possible. Even if we were to frack these wells right away, it is still going to take as a three months for revenues. We are talking to the very fracking companies about delayed payment schedules, which is what happened in the 1980s and the way we handled it back then and that is the way we are attempting to handle it once again now.
