Synergy Resources sees record 2Q revenues

PLATTEVILLE – Synergy Resources Corp. posted record revenues of $6.2 million in the second quarter, a more than $4 million increase over the same quarter last fiscal year.

Synergy, which drills for oil and gas in Weld County, on Wednesday reported production of nearly 1,100 barrels of oil equivalent per day during the second quarter. That represented a 183-percent increase from the same quarter last year as the company ended the quarter with 1,250 barrels of oil equivalent per day.

Synergy also posted revenue of more than $7.7 million over six months and acquired an additional 8,875 acres in the Denver-Julesburg Basin. The increase raises the company’s total leases to more than 176,000 net acres.

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Synergy also sold 14.6 million shares of common stock at $2.75 per share for net proceeds of $37.4 million.

“Increased production from our new wells fueled record second-quarter and six-month results,” Synergy Chief Financial Officer Monty Jennings said.

Synergy has drilled 31 wells, 18 of which have reached productive status, Chief Executive Officer Edward Holloway said. Completion activities are under way on 13 wells, most of which are expected to reach productive status during the third quarter.

The company also participated in its first two horizontal wells with Noble Energy and PDC Energy. It plans to drill and complete a total of 52 vertical wells in fiscal 2012 as well as participate in additional horizontal wells in the Wattenberg field, Holloway said.

“While the first half of fiscal 2012 has been the most successful period in our company’s history, our visible growth in vertical and horizontal drilling is strong,” Holloway said. “Our core position in the Wattenberg field provides us with strong upside potential in the oil and liquid-rich portion of the play.”