Synergy reports $2.4M profit
The profit represented a big swing from the $292,000 loss that Synergy suffered the same quarter last year, according to an earnings report released by the company Monday. Synergy held its first conference call with investors Tuesday just days, after it rang the opening bell at the New York Stock Exchange.
"We have been increasingly attracting attention from the financial community," Synergy CEO Edward Holloway said in a conference call. "It seems the time was right to present our results in this public forum."
Synergy revenues increased 157 percent to a record $7.5 million during the third quarter. Operating income improved 603 percent to a record $3.8 million.
The company also posted a net oil and gas production increase of 190 percent to more than 124,700 barrels of oil-equivalent per day. That's an average of more than 1,350 barrels of oil-equivalent per day during the quarter vs. about 460 the same period a year ago.
Synergy drilled 11 wells and brought six into production during the third quarter. The total number of wells drilled by Synergy increased to 90, with 79 brought into production and the remaining 11 currently being completed.
By the end of the third quarter, the company had completed, acquired or participated in a total of 170 producing oil and gas wells, including 106 added during the past year.
In addition, production on the company's first horizontal well began during the third quarter.
The company has since participated in drilling four more horizontal wells in the Niobrara formation that were being completed, he said. Synergy also agreed to participate in four additional horizontal wells to be drilled by various operators.
"The valuable experience gained by participating with other operators has allowed us to commence planning horizontal wells that we will drill and operate for our own account in fiscal 2013," Holloway added.
The company also increased its proven reserves to 3.6 million barrels of oil and 24.8 billion cubic feet of gas. The estimated value of those reserves before taxes is $129.7 million.
Synergy shares fell almost 9.2 percent to $2.78 on Tuesday.
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