Boston, MA 04/28/2014 (wallstreetpr) – Synergy Resources Corp (NYSEMKT:SYRG), the oil and gas company, declared on Friday that as at the end of February’ 2014, marking the completion of six months, its proven reserves have climbed up from 13.8 million to 19.7 million barrels of oil equivalent, as per the company’s end-of-fiscal-year report as on August’ 31. In the meanwhile, the estimated value of these reserves has also increased from $236 million to $326 million at present.
Result Of Drilling Program
The estimated reserves are inclusive of proven developed producing assets, proven developed non-producing reserves and undeveloped assets. By the meaning of proven developed producing assets, it means those assets that give an output, while developed non-producing assets are those that are drilled, but not generating output. On the other hand, undeveloped assets are reserves that are not drilled, but have high potential to given output. Proved developed producing assets along with non producing assets contributed two thirds of the value of the reserves, while proven undeveloped reserves accounted for third of the value.
Synergy Resources Corp (NYSEMKT:SYRG)’s co-chief executive, William E. Scaff Jr. mentioned during the press conference that the substantial rise in the proven reserves could be majorly accredited to the company’s effort of horizontal drilling. The company started drill program of horizontal wells back in May last year. As a result, its 11 horizontal wells formed the part of proven developed producing assets in the company’ mid-year report, for the first time. Scaff added that the company intends to include another 20 to 25 horizontal wells in its reserve report for the fiscal year ending on August 31′ 2014.
More About The Company
Synergy Resources Corp (NYSEMKT:SYRG) mainly undertakes the work of acquisition, development, exploitation, exploration and production of oil and natural gas assets primarily based in Denver-Julesburg basin located in northeast Colorado and comprises of Wyoming, Nebraska and Kansas.
