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EXHIBIT 99
Synergy Resources Reports Initial Production from Horizontal Wells and Updates
Flood Impact on Existing Wells
October 1, 2013. Synergy Resources Corporation (NYSE MKT: SYRG) a U.S. oil and
gas exploration and production company with operations focused in the D-J Basin,
provides initial production results for five wells on its Renfroe pad in the
Wattenberg Field. The first four wells were placed into production while flowing
up 7 inch casing. Final completion was achieved with the installation of
production tubing on all five wells. The fifth well on this pad, the Renfroe
C-1-36HNZ, had a continuous 24 hour initial production rate of 784 BOEs while
flowing up 2 3/8 inch production tubing. The production mix on all five wells
consisted of 77% crude oil, 8% NGLs and 15% natural gas. The company estimates
the final total well cost will be under $4 million per well. The following table
presents "before and after tubing installation" production rates and days on
production for each specific well, expressed as barrels of oil equivalent per
day (BOED):
BOED
Well Name --------------- Days on BOED Days on
(pre tubing) production (post tubing) production
Renfroe 446 23 558 4
32-1-36CHZ
(Codell)
Renfroe 338 19 586 4
32-1-36NHZ
(Niobrara B)
Renfroe 494 18 661 4
42-1-36CHZ
(Codell)
Renfroe 429 17 588 4
42-1-36NHZ
(Niobrara B)
Renfroe NA NA 791 5
C-1-36NHZ
(Niobrara B)
Drilling at the Leffler location continues to proceed according to schedule.
There are six wells planned on the Leffler pad consisting of 5 wells targeting
the Niobrara B bench and 1 well targeting the Codell formation. The fourth well
on the pad is currently in progress and the fifth well is expected to spud by
the end of week. The company believes all of these wells will be completed and
reach productive status by the end of December, 2013.
The company now has 41 permits approved and an additional 40 horizontal permits
in process for horizontal wells in the Wattenberg Field. Further details on its
horizontal drilling program will be provided by the company during its quarterly
conference call in early November.
On a non-operated basis the company has participated in its first extended reach
lateral. The company has a 2.75% working interest in the well, which is located
in the Wattenberg Field. Also of note are two non-operated Codell wells in which
Synergy has a majority working interest that have averaged over 300 BOED for 90
days with 77% of the production being crude oil.
The company is able to provide the following details regarding the impact of
recent flooding on its operations. A total of 20 vertical wells were affected by
the flooding. In connection with the flooding, all of the wells were temporarily
shut-in. The aggregate production from these wells is less than 5% of the
company's daily production. Each location has been examined by company personnel
and verified by the State of Colorado regulatory compliance officers that no
hydrocarbons were released. Ten of the wells have already been placed back into
production. The remaining ten wells will be repaired and placed back into
productive status during the next several weeks
About Synergy Resources Corporation
Synergy is a Colorado-based independent exploration and production company
focused primarily on the development of its assets 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 a
large leasehold position directly to the northeast of the Wattenberg Field (the
"Northern Extension Area"), which Synergy believes to be prospective for the
Niobrara and Greenhorn formations.
SAFE HARBOR
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, 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 forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and
important factors (many of which are beyond the 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 Synergy
conducts business, changes in the interest rate environment, legislation or
regulatory requirements, conditions of the securities markets, the ability to
raise capital, changes in accounting principles, policies or guidelines,
financial or political instability, acts of war or terrorism, as well as other
economic, competitive, governmental, regulatory and technical factors affecting
the Company's operations.
These forward-looking statements are based on current expectations and
assumptions about future events. While 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 Synergy's control.
CONTACT:
Investor Relations Contact:
Jon Kruljac
Synergy Resources Corporation
jkruljac@syrginfo.com
Tel (303) 840-8166
Company Contact:
Rhonda Sandquist
Synergy Resources Corporation
rsandquist@syrginfo.com
Tel (970) 737-1073
Source: Synergy Resources Corporatio
