PLATTEVILLE, CO--(Marketwired - June 10, 2013) - Synergy Resources Corporation (NYSE MKT: SYRG) ("Synergy" or the "Company") announced its 18-month capital budget for the period ending August 31, 2014. The budget calls for a one rig horizontal drilling program on the Company's 17,046 net acres in the Wattenberg Field. The Company plans on spending $154 million on drilling and completion activity, $144 million of which will be dedicated to the drilling of twenty-five net operated horizontal wells and seven net non-operated horizontal wells in the Wattenberg Field. The Company will also spend $10 million on drilling six operated and six non-operated vertical wells in the Wattenberg Field and $35 million on additional leasehold acquisitions in the Wattenberg Field, as well as for corporate purposes, including working capital.
The following table lays out the 18-month drilling and completion budget as of March 1, 2013:
|18-Month Drilling and Completion Budget ending 8/31/2014|
|Net Operated||Net Non-Operated||Total Net Wells||Well Cost ($MM)||Drilling Budget ($MM)|
Synergy recently announced that it had completed drilling the first of five horizontal wells on the Renfroe pad and has since commenced drilling operations on the second well. After drilling the five wells, Ensign Rig #17 will move to a nearby lease and begin drilling from a second five or six well pad. Synergy plans on beginning the completion of all five wells on the Renfroe lease in late July or early August 2013.
On June 4, 2013, Synergy announced that its reserve borrowing base had increased from $47.0 million to $75.0 million under the terms of its $150.0 million credit facility.
ABOUT SYNERGY RESOURCES CORPORATION
Synergy is a Colorado-based independent exploration and production company focused primarily on the development of its approximately 17,046 net acres in the Wattenberg Field in the Denver-Julesburg Basin ("D-J Basin") in Weld County, Colorado. In addition to the Company's Wattenberg Field acreage position, it has also assembled approximately 20,040 net acres directly to the northeast of the Wattenberg Field (the "Northern Extension Area"), which Synergy believes to be prospective for the Niobrara and Greenhorn formations.
This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this press release regarding our financial position, business strategy, plans and objectives of management for future operations and industry conditions, and are forward-looking statements. When used in this press release, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: general economic or industry conditions, nationally and/or in the communities in which we conduct business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our operations.
We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.