PLATTEVILLE, CO--(Marketwired - June 04, 2013) - Synergy Resources Corporation (NYSE MKT: SYRG) announced that its reserve borrowing base has increased from $47 million to $75 million under the terms of the $150 million credit facility led by Community Banks of Colorado. The credit facility matures November 2016 and has a current interest rate of approximately 3.45%.
Monty Jennings, CFO, of Synergy Resources commented, "We are pleased with the increase in our borrowing base which reflects the growth in the PV10 value of our proved reserves to over $208 million. We appreciate Community Banks of Colorado and the other lenders that have joined the syndicate for their continued responsiveness to our capital requirements as we grow."
Regarding current operations and production Ed Holloway, President and CEO of Synergy Resources, stated, "Operationally, we are finishing drilling the first of five horizontal wells on the Renfroe pad and we will begin drilling the second well later this week. As we are completing the Renfroe wells late this July or early August, we will be moving Ensign Rig #17 to a nearby lease and begin drilling 5 or 6 horizontal wells from that pad. We intend to drill horizontal wells throughout fiscal 2014 and we expect that this drilling program will result in significant production growth."
Holloway continued, "On the production side, despite still confronting persistent high line pressure issues in the Wattenberg Field, and not having drilled any operated wells in the past two quarters due to our transition from vertical focused drilling to horizontal drilling, we continue growing production primarily from our participation in non-operated wells. We anticipate our production will increase by approximately seven to ten percent sequentially in our fiscal 2013 third and fourth quarters which is slower than our historical rate of nearly twenty percent sequential growth per quarter. However, as we enter fiscal 2014, we believe that we will have completed and brought into production our five operated horizontal Renfroe wells which will begin a phase of rapid production growth that we believe will soon exceed all of our past results on a BOE basis. We look forward to updating the public on our progress next month during our quarterly earnings conference call on July 10th."
About Synergy Resources Corporation
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 risks 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.
- Company Earnings