Exploration & Production | Reserves

Synergy Ramps Up Wattenberg Reserves 105% YOY

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   |    Thursday,May 07,2015

Synergy Resources Corporation reported that its interim fiscal year proved reserve evaluation for the period ending 02/28/15 increased 105% to 40.4mm/BOE compared to 19.7mm/BOE for the interim fiscal period ending 02/28/14 and the PV10 value of the proved reserves increased 56% to approximately $510 million from $326 million year-over-year.

Proved developed producing and proved developed non-producing assets accounted for 56% of the PV10 value of the reserves while the remaining value is proved undeveloped reserves. The volume of the reserves is split 52% for oil and 48% for natural gas.

William E. Scaff, co-CEO of Synergy, commented, "Our growth in proved reserves is a result of the success of our operated horizontal drilling program, the performance of the horizontal wells in the Wattenberg Field, and proved reserves added as a result of our acquisition we completed in December. Following our quarter ended February 28, 2015 we have continued drilling our 11 well Cannon pad and began hydraulic fracturing and other completion operations on our inventory of 29 wells in progress. Our plans call for bringing all 40 of these wells into production by this August, in which case they should be included as proved developed reserves in our fiscal 2015 year-end reserve report. We continue to work with Ryder Scott Company, our third party reserve engineers, to recognize the value created by increased horizontal well densities within drilling spacing units in the Wattenberg Field."