Synergy Resources Corp (NYSEMKT:SYRG) reported that in 2Q2016 production sales volumes came at 11.1 MBOE/day, showing 34% production growth compared to the comparable period in last year. Capital expenditures for the quarter ended June 30, 2016 came at $36.5 million. In the reported period, the company closed two equity offerings for net proceeds of $454.2 million. Also, it completed its acquisition deal worth $505 million in the Wattenberg Field. The liquidity came at $223.6 million, which was comprised of $78.6 million as cash in hand and the remaining $145 million as undrawn revolver.
Synergy Resources said that they continued to run one drilling rig into this month. They have completed drilling activities at the Fagerberg Pad and the rig has begun drilling functions on a municipal location in the city of Evans, where the firm has two pads. The mobilization of a second rig has been completed and drilling activities are projected to start in this week.
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Lynn A. Peterson, the CEO of Synergy, said that production for 2Q2016 jumped almost approximately 34% over the same quarter in 2015, but was down marginally from the previous quarter. This small decline can be attributed to operator completion measures, the Adams County vertical well divestiture together with increased line pressures in the western region of the Wattenberg Field.
The basin differentials were substantial for both the quarter and first semester of 2016 as almost all the production was supplied to fulfill pipeline commitments finalized in 2014. Lease operating expense in 2Q2016 was affected by almost $1.4 million following an unusual scope of environmental remediation task.
This job is a normal course of performing operations for any resource extraction firm; however, they witnessed more activity over normal course following certain clean-up assignments linked to previously bought properties. The CEO of Synergy added that they project this level of activity to lessen in upcoming quarters as they remediate the aforesaid properties.
