Attached files
EXHIBIT 99.1
SYNRGY RESOURCES REPORTS RECORD PRODUCTION RATE, PROVIDES OPERATIONS UPDATE AND
SETS FISCAL YEAR END RESULTS CONFERENCE CALL FOR OCTOBER 28, 2014.
PLATTEVILLE, CO -- (Marketwired) -- 09/30/14 -- Synergy Resources
Corporation (NYSE MKT: SYRG), a U.S. oil and gas exploration and production
company focused in the Denver-Julesburg Basin, reported that it reached a peak
production rate of 8,700 BOED in late August as flush production from the six
wells on its Eberle pad came on line. The Eberle pad was the fourth pad in as
many months to begin producing, as Synergy continues to expand its horizontal
drilling program in the Wattenberg Field. The company estimates average
production for the first quarter of fiscal 2015 ending in November will range
from 7,500 to 8,500 BOED per day.
In September, Synergy added a third rig to its horizontal drilling fleet
with the spudding of eight wells planned on the Wiedeman pad. Synergy is
utilizing a batch drilling process on Wiedeman and seven of the eight wells have
surface casing set and the lateral on the second well is being drilled. Wiedeman
will have four standard length laterals and four extended reach laterals,
targeting both the Niobrara and Codell formations. Synergy is anticipating the
Wiedeman wells will be in production by February 2015 and has an approximate 70%
average working interest in the wells.
On its other operated drilling pads, Synergy is drilling the sixth and final
well on the Weld 152 pad where it holds an 81% working interest and believes
production from the pad will begin in November. Synergy is also drilling the
seventh well on its Kiehn pad. Synergy now plans on drilling thirteen wells
permitted on its Kiehn pad, eight Kiehn wells and five Weis wells, this calendar
year and to bring all the wells into production in early calendar 2015. Synergy
has 100% working interest in the Kiehn and Weis wells.
Synergy's production from its operated horizontal wells is meeting the company's
objectives, despite persistent high line pressures and other midstream
constraints in parts of the Wattenberg Field. Following are production rates
from Synergy's most recent horizontal wells:
# of Working Days of Average Daily (BOED)
Name of Pad Wells Interest % Production Production per well 8/8ths
------------------------------------------------------------------------------
Union 6 91% 90 460
Kelly Farms 4 60% 30 450
Eberle 6 95% 27 522
Production from the Kelly Farms pad has been materially restricted by line
pressures of over 350 psi in the area, and further impacted by flooding this
summer, which caused a seventy five day delay in upgrading to an eight inch
gathering line from the current four inch line. Well head pressures on the Kelly
Farms wells remain strong and the company anticipates the eight inch gathering
line will be tied into the pad by the end of October.
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Non-operated activity has also increased and Synergy is participating with other
operators on several horizontal pads that are currently being completed that
will add two to three net wells to Synergy's interest. These wells are scheduled
to be in production in the next sixty days. Additionally, Synergy is
participating as a non-operator in wells that are either currently being drilled
or scheduled to spud before calendar year end that equate to approximately five
net wells to its interest.
Synergy has accelerated its permitting activities for horizontal wells to meet
future development plans, including preparing to permit a 22 well pad in the
Greeley area that will consist entirely of 9,000 foot extended reach lateral
wells. Synergy will be the operator of the wells and have a 50% working
interest.
Synergy will provide further operational and financial details during its fiscal
year end conference call.
Conference Call
The company will hold a conference call on Tuesday October 28th, 2014 at 12:00
p.m. Eastern time to discuss results for its fiscal year ended August 31st,
2014.
Synergy Resources co-CEO Ed Holloway, co-CEO William Scaff, Jr., CFO Monty
Jennings, COO Craig Rasmuson, and VP of Capital Markets and Investor Relations
Jon Kruljac will host the presentation, followed by a question and answer
period.
Date: Tuesday October 28th, 2014
Time: 12:00 p.m. Eastern time (10:00 a.m. Mountain time)
877-407-9122 Toll Free Dial-In (US & Canada)
201-493-6747 International/Local Dial-In
The conference call will be webcast simultaneously which you can access via this
link: http://syrginfo.equisolvewebcast.com/q4-2014 and via the investor section
of the company's web site at www.syrginfo.com.
Please call the conference telephone number 5-10 minutes prior to the start
time. An operator will register your name and organization. If you have any
difficulty connecting with the conference call, contact Rhonda Sandquist with
Synergy Resources at 970-737-1073. A replay of the call will be available after
3:00 p.m. Eastern time on the same day and until November 11th, 2014.
Replay Dial-In Numbers
877-660-6853 Toll Free (US & Canada)
201-612-7415 International/Local
Replay ID#411931
About Synergy Resources Corporation
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Synergy Resources Corporation is a domestic oil and natural gas exploration and
production company. Synergy's core area of operations is in the Denver-Julesburg
Basin, which encompasses Colorado, Wyoming, Kansas, and Nebraska. The Wattenberg
field in the D-J Basin ranks as one of the most productive fields in the U.S.
The company's corporate offices are located in Platteville, Colorado. More
company news and information about Synergy Resources is available at
www.syrginfo.com.
Important Cautions Regarding Forward Looking Statements
This press release may contain forward-looking statements, within the meaning of
the Private Securities Litigation Reform Act of 1995. The use of words such as
"believes", "expects", "anticipates", "intends", "plans", "estimates", "should",
"likely" or similar expressions, indicates a forward-looking statement. These
statements are subject to risk and uncertainties and are based on the beliefs
and assumptions of management, and information currently available to
management. The actual results could differ materially from a conclusion,
forecast or projection in the forward-looking information. Certain material
factors or assumptions were applied in drawing a conclusion or making a forecast
or projection as reflected in the forward-looking information. The
identification in this press release of factors that may affect the company's
future performance and the accuracy of forward-looking statements is meant to be
illustrative and by no means exhaustive. All forward-looking statements should
be evaluated with the understanding of their inherent uncertainty. Factors that
could cause the company's actual results to differ materially from those
expressed or implied by forward-looking statements include, but are not limited
to: the success of the company's exploration and development efforts; the price
of oil and gas; worldwide economic situation; change in interest rates or
inflation; willingness and ability of third parties to honor their contractual
commitments; the company's ability to raise additional capital, as it may be
affected by current conditions in the stock market and competition in the oil
and gas industry for risk capital; the company's capital costs, which may be
affected by delays or cost overruns; costs of production; environmental and
other regulations, as the same presently exist or may later be amended; the
company's ability to identify, finance and integrate any future acquisitions;
and the volatility of the company's stock price.
Investor Relations Contact:
Jon Kruljac
Synergy Resources Corporation
jkruljac@syrginfo.com
Tel (303) 840-8166
Company Contact:
Rhonda Sandquist
Synergy Resources Corporation
rsandquist@syrginfo.com
Tel (970) 737-1073
Source: Synergy Resources Corporatio
