SOURCE: Synergy Resources Corporation

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October 16, 2014 07:00 ET

Synergy Resources Corporation Announces Year-Over-Year Proved Reserves Increase 133%, PV 10 Value $534 Million

PLATTEVILLE, CO--(Marketwired - October 16, 2014) - Synergy Resources Corporation (NYSE MKT: SYRG), a U.S. oil and gas exploration and production company focused in the Greater Wattenberg Area of the Denver-Julesburg Basin, announces that its proved reserve evaluation for the 2014 fiscal year ending 8/31/2014 increased 133% to 32.2mm/BOE compared to 13.8mm/BOE for fiscal year end 8/31/2013 and the PV10 value of the proved reserves increased 126% to $534 million from $236 million. Proved developed producing and proved developed non-producing (behind pipe) assets accounted for 61% of the value of the reserves while the remaining value is proved undeveloped reserves. The volume of the reserves is split evenly between oil and natural gas which includes the natural gas liquids.

William E. Scaff, Jr. co-CEO of Synergy, commented, "Our accelerated growth in proved reserves is a result of the success of our multi-rig operated horizontal drilling program. We now have over 30 operated horizontal wells included in our third party reserve report as proved developed producing assets. We currently have three rigs running and our plans call for another 30-35 horizontal wells to be in production or in completion stage by February 28th, 2015. These new wells will contribute to proved developed reserves for our fiscal 2015 mid-year reserve report. We continue to work with Ryder Scott Company, our third party reserve engineers, to account for increased density of horizontal Niobrara and Codell wells in the Wattenberg Field."

Synergy also announced that management is participating in the Canaccord Global Resources Conference in New York, NY, today, Thursday, October 16, 2014, Chief Operating Officer, Craig Rasmuson and Vice President of Capital Markets and Investor Relations, Jon Kruljac will conduct investor meetings, and Mr. Rasmuson will also participate in a panel discussion regarding the current trends, results and economics of operating horizontal Niobrara and Codell wells in the Wattenberg Field. Further, Synergy management plans to participate in upcoming conferences at:

Niobrara Completions and Well Spacing Congress  Denver, CO November 18-19, 2014
    
Cowen and Company, Ultimate Energy Conference  New York, NY December 2-3, 2014
    
Global Hunter Securities, 1X1 Boston Energy Day  Boston, MA December 4, 2014
    
Capital One Securities, Annual Energy Conference  New Orleans, LA December 11-12, 2014

An updated investor presentation and conference details can be accessed on the Company's website at www.syrginfo.com

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 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.

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