Yesterday, domestic oil and gas exploration and production company Synergy Resources reported its second quarter and six-month results for the period ending Feb. 9, 2012. Net oil and natural gas production for the company, which is focused in the Denver-Julesburg Basin (D-J Basin), increased to 1,091 barrels of oil equivalent per day (Boe/d) in the second quarter 2012, compared with 386 Boe/d for the second quarter 2011.
Highlights from the second quarter and six-month results for Synergy Resources include a reported record net income of $6,118,805 for the second quarter and $7,745,881 for the six-month period; second quarter revenues of $6,218,975 as compared with $2,033,687 for the same period of the previous year, amounting to a 206% increase; adjusted EBITDA, a non-GAAP measure, of $7,260,267 for the six-month period, equaling a 68% return on revenue; participation in the company’s first two horizontal wells with other operators; acquisition of an additional 8,875 acres in the D-J Basin, bringing Synergy’s acreage position to 204,937 gross acres and 176,601 net acres under lease; completion of the sale of 14.6 million shares of common stock at $2.75 per share, resulting in net proceeds totaling around $37.4 million; and quarter-ending production in excess of 1,250 Boe/d.
Synergy anticipates that proceeds from its equity offering, along with cash flow from operations and additional borrowings available under the company’s revolving line of credit, will be sufficient to meet the company’s capital needs for the remainder of the 2012 fiscal year.
The continued execution of Synergy’s vertical and horizontal drilling program in Wattenberg Field fueled strong second quarter and six-month results. Since the company began its current drilling program, 31 wells have been drilled, of which 18 have reached productive states. Completion activities are also underway on 13 wells, most of which are expected to reach productive status during the company’s fiscal third quarter. Synergy plans to drill and complete a total of 53 vertical wells in fiscal 2012 and participate in additional horizontal wells with notable operators in the Wattenberg Field.
Synergy Resources Corporation’s core area of operations is in the D-J Basin, which encompasses Colorado, Wyoming, Kansas, and Nebraska. The Wattenberg Field, located in the D-J Basin, is the seventh-largest field in the United States in terms of proved gas reserves, and it ranks ninth in production. Corporate offices for Synergy are located in Platteville, Colo.
For more information, visit www.SYRGinfo.com
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