Synergy Resources Corporation Contracts for Third Horizontal Drilling Rig

By Market Wire,  July 09, 2014, 06:15:00 AM EDT


PLATTEVILLE, CO -- (Marketwired) -- 07/09/14 -- Synergy Resources Corporation(NYSE MKT:SYRG), a U.S. oil and gas exploration and production company focused in the Denver-Julesburg Basin, has entered into a turn-key drilling contract with Ensign Drilling Company of North America (Ensign) for a third automated drilling rig (ADR) to drill a minimum of eight horizontal wells on Synergy's Wiedeman lease. Synergy has the option to retain the additional rig on a pad by pad basis going forward. Synergy has also extended its turn-key drilling contract with Ensign for Rig #134 through December 31st, 2014. Ensign Rig #131 remains under its original contract terms with Synergy through the end of 2014. 

Craig Rasmuson, Chief Operating Officer of Synergy, commented, "We are very pleased to announce the expansion and extension of our turn-key drilling contracts with Ensign. As our activities in the Wattenberg Field increase, it is important to secure these ADR rigs which are more cost and time efficient than conventional rigs. Also, the ADR rigs run on natural gas reducing the noise and environmental impact."

About Synergy Resources Corporation

Synergy Resources Corporation is a domestic oil and natural gas exploration and production company. Synergy's core area of operations is in the Denver-Julesburg Basin, which encompasses Colorado, Wyoming, Kansas, and Nebraska. The Wattenberg field in the D-J Basin ranks as one of the most productive fields in the U.S. The company's corporate offices are located in Platteville, Colorado. More company news and information about Synergy Resources is available at www.syrginfo.com.

Important Cautions Regarding Forward Looking Statements

This press release may contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "believes", "expects", "anticipates", "intends", "plans", "estimates", "should", "likely" or similar expressions, indicates a forward-looking statement. These statements are subject to risk and uncertainties and are based on the beliefs and assumptions of management, and information currently available to management. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information. The identification in this press release of factors that may affect the company's future performance and the accuracy of forward-looking statements is meant to be illustrative and by no means exhaustive. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Factors that could cause the company's actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: the success of the company's exploration and development efforts; the price of oil and gas; worldwide economic situation; change in interest rates or inflation; willingness and ability of third parties to honor their contractual commitments; the company's ability to raise additional capital, as it may be affected by current conditions in the stock market and competition in the oil and gas industry for risk capital; the company's capital costs, which may be affected by delays or cost overruns; costs of production; environmental and other regulations, as the same presently exist or may later be amended; the company's ability to identify, finance and integrate any future acquisitions; and the volatility of the company's stock price.

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 Corporation



This article appears in: News Headlines

Referenced Stocks: SYRG


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