Synergy Resources Increases Proved Reserves by 40% in Its Mid-Year Update
Press Release Today - Synergy announced that its third party reserve engineer, Ryder Scott Company, has evaluated the company's mid-year reserves for the period ending February 28th, 2013 and reported a PV10 value of $208 million on proved reserves of 13.63 million barrels of oil equivalent (BOE) versus a PV10 value of $148 million and 10.66 million BOE for the period ending August 31st, 2012. The largest increase in the reserves was in the Proved Developed Producing (PDP) category which rose 60%. There was an increase in Proved Developed Not Producing (PDNP) reserves of 33% and an increase in Proved Undeveloped (PUD) reserves of 9%.
Seems a tad odd that Synergy's stock price didn't respond in a positive way when Ryder Scott (most conservative but considered the best in determining true reserves) reported large increase in proved reserves...this is a major building block in value of an oil and gas exploration company.
The credit line is attached to the reserve report. With this increase in reserves , which was impressive, it also means our credit line is increased significantly. I would of thought we would of seen a bit of a bump in the stock price, but I'm not complaining one bit!