Synergy Resources Signs Joint Development Deal with Johnson Production Corporation and Kodiak Petroleum, Inc. to Drill Wells in Nebraska
Aug 18 14
Synergy Resources announced that it has entered into a joint development agreement with Johnson Production Corporation and Kodiak Petroleum Inc., to drill oil wells and develop acreage in Dundy County, Nebraska. The agreement covers a defined area of 8,011 net mineral acres in Dundy County, Nebraska, and provides for the drilling of up to ten wells. It has an initial term of one year, and annual extension provisions for an additional four years. Johnson Production or Kodiak will be the operator for all wells. For each well that Johnson Production and Kodiak drill, they will pay 62.5% of the costs to drill and complete, and will thereby earn a 50% working interest in the well and the spacing unit. For each well that they drill, they will earn a 5% interest in SYRG's interest in the remainder of the contract area. If all ten wells are drilled, Johnson Production and Kodiak will earn a 50% interest in SYRG's interest in the contract area. SYRG will pay 37.5% of the cost of each well and will retain both a 50% working interest and an overriding royalty interest.
Synergy Resources Provides Production Update at the Wattenberg Field; Provides Production Guidance for the Fourth Quarter and Full Year of 2014
Aug 15 14
Synergy Resources provided an update of its production and operations at the Wattenberg Field. The company announced that horizontal drilling operations and completions are progressing according to plan at the Wattenberg Field. The four Kelly Farms wells are now in early production. The six Eberle wells, which include two mid reach 7,000 foot extended lateral wells with 45-47 frac stages each, are in the final completion stage and are flowing back or in initial production.
For the fourth quarter, the company expects the production to range between 5,800 BOED and 6,200 BOED and that it expects to end the fiscal year at a production rate of between 8,000 BOED and 9,500 BOED.
Synergy Resources Corporation Reports Unaudited Earnings and Production Results for the Third Quarter and Earnings Results for the Nine Months Ended May 31, 2014; Provides Capex Guidance for the Fiscal Year 2015
Jul 9 14
Synergy Resources Corporation reported unaudited earnings and production results for the third quarter and earnings results for the nine months ended May 31, 2014. For the quarter, the company reported oil and gas revenues of $25,672,000 compared to $12,314,000 a year ago. Operating income was $11,259,000 compared to $4,865,000 a year ago. Net income was $7,160,000 or $0.09 diluted per share compared to $3,615,000 or $0.06 diluted per share a year ago. Adjusted EBITDA was $18,931,000 compared to $9,334,000 a year ago. The year-over-year improvement was attributed to an 83% increase in production, primarily from the new horizontal wells brought on line and a 14% increase in the realized average selling price per BOE.
For the nine months period, the company reported oil and gas revenues of $67,966,000 compared to $31,549,000 a year ago. Operating income was $27,955,000 compared to $12,893,000 a year ago. Net income was $18,421,000 or $0.24 diluted per share compared to $8,585,000 or $0.15 diluted per share a year ago. Net cash provided by operating activities was $46,745,000 compared to $28,243,000 a year ago. Acquisition of property and equipment was $112,155,000 compared to $70,269,000 a year ago. Adjusted EBITDA was $49,215,000 compared to $23,221,000 a year ago.
For the quarter, the company reported oil (Bbls) production of 232,571 compared to 115,225 a year ago. Gas (McF) was 879,062 compared to 553,909 a year ago. BOE (Bbls) was 379,081 compared to 207,543 a year ago.
Initial CapEx budget for fiscal 2015 is $200 million to $225 million. About 95% of fiscal 2015 expenditures will go towards drilling and leasing in the Greater Wattenberg Area.