Synergy Resources Corp. is a domestic oil and natural gas
exploration and production company operating in the Wattenberg Field of the
Denver-Julesburg Basin in northeast Colorado. The company operates 308 wells
throughout the region, in addition to having an ownership interest in nearly
300 net producing wells. Through these projects, Synergy has access to an
estimated 40.3 million barrels of oil equivalent, according to a February
report by independent oil and gas consulting firm Ryder Scott Company.
The Denver-Julesburg Basin has established itself as one of
the most important producing areas in the country by consistently generating
oil and gas since its discovery in 1901. The total value of past production
from the region, if calculated in modern prices, would exceed $150 billion. For
Synergy, the basin’s high level of predictability and high drilling success
rate could provide the company with an opportunity to achieve rapid return on
investment in the future.
During its fiscal second quarter of 2015, Synergy leveraged
its position within the Wattenberg field to dramatically increase production.
In addition to increasing year-over-year revenue by three percent, the company
recorded a 98 percent year-over-year increase in overall production. Primarily,
this spike was a result of Synergy’s December acquisition of a 5,040 acre
leasehold in the Wattenberg Field, which provided access to 73 operating
vertical wells, as well as non-operated working interests in 17 horizontal
wells.
“Our growth in proved reserves is a result of the success of
our operated horizontal drilling program, the performance of the horizontal
wells in the Wattenberg Field, and proved reserves added as a result of our
acquisition we completed in December,” William E. Scaff, co-chief executive
officer of Synergy, stated in a news release.
In May, Synergy continued to expand its presence in the
Denver-Julesburg Basin when it reached an agreement with its non-operating
partner to purchase the remaining 35 percent working interest in the Greenhorn
prospect, which is located in the northeast extension area of the basin.
“Over the past twelve months we have been pursuing a higher
working interest in all of our operated assets both in the core of the
Wattenberg Field and in the extension area,” Scaff continued. “This
acquisition… is consistent with that objective.”
Despite a sharp decrease in commodity prices that’s
persisted throughout the first six months of 2015, Synergy’s recent performance
is a promising indication for prospective investors moving forward. Look for
the company to leverage its established position within the Greater Wattenberg
Field with the goal of encouraging sustainable returns in the years to come.
For more information, visit www.syrginfo.com
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MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html
