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Summary: Following SYRG's acquisition of certain Orr energy's assets for $42 million ($30 million in cash and $12 million in common stock), Orr Energy became one of the major shareholders of Synergy Resources.        


Summary: SYRG bought Orr Energy's certain assets that include 36 producing oil and gas wells in the Wattenberg Field of the Denver-Julesburg Basin for $42 million ($30 million in cash and $12 million in common stock). Synergy has a 100% working interest (77% net revenue interest) in 29 of the wells, with a smaller working /net revenue interest in the remaining seven wells. Leases cover approximately 3,933 gross (3,196 net) acres. Of these net acres, 2,191 are  near existing Synergy leased acreage. There is the potential to drill approximately 75 new vertical wells or 55 horizontal wells. Regarding the remaining net acres (approximately 1,005), management plans to use existing seismic data acquired in the transaction to establish a drilling program for new vertical and horizontal wells on this acreage. This acreage is in close proximity to the producing wells of other operators, where production is believed to contain a high oil ratio. Management expects the acquisition to be accretive to SYRG's financial performance by the fiscal second quarter 2013.


Summary: Screener for companies trading at under $10/share with similiar gross and net margin, which presumably means higher efficiency. Then the author does a very brief comment to the company from a free cash-flow perspective.


Summary: The company expanded its line of credit from $30 million to $47 million with a syndicate group comprised of Community    Banks of Colorado, Colorado Business Bank, and Amegy Bank National. The maximum interest rate on the line of credit is LIBOR plus 3.25%. The company anticipates using the expanded credit line to complete the acquisition of Orr Energy and fund a portion of its fiscal 2013 CAPEX budget. 

Tópico: Recent News

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