Lynn Peterson, president of Synergy Resources Corporation (NYSE MKT: SYRG), presented today at EnerCom’s The Oil & Gas Conference® 20.
Synergy Resources Corporation is a domestic oil and natural gas exploration and production company with 451,000 gross (309,000 net) acres under lease. Synergy’s core area of operations is in the Denver-Julesburg Basin, which encompasses Colorado, Wyoming, Kansas, and Nebraska. All of the company’s production to date comes from wells in the Wattenberg Field in the D-J Basin which ranks as one of the most productive fields in the U.S. Synergy’s corporate offices are located in Platteville, Colorado.
Net oil and natural gas production increased to 738,357 BOE, resulting in year-over-year revenues improvement in its fiscal third quarter 2015. The estimated $250-$300 million fiscal 2016 capital budget is expected to be fully funded.
During the company’s breakout session, management was asked the following questions:
- How is $40 oil affecting what assets you are looking for acquisition?
- How do your mid-reach lateral wells look?
- What do you look at for lease expenses?
- What does the payout look like based on your $250 to $300 million CAPEX budget?
- Considering the constraints of the current price environment, when will you feel comfortable going back into growth mode?
- Regarding the Greenhorn, what has been the most challenging aspects to complete wells?
- Regarding M&A, how do you maintain the health of your balance sheet?
- Are lease costs coming down?
- Where does the reduction of the $250 to $300 million CAPEX budget come from, cost reduction or efficiencies? Where are efficiencies from?
- What is the breakdown of the $2.5 to $3 million well costs?
