Synergy Resources Corp (SYRG) First Quarter 2015 Earnings Call Transcript

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Craig Rasmuson, COO
David, it is Craig. We will strategically go to those Western flanks out of those 13 wells on the one pad, the 18 wells and the five Weis wells first simply because the line pressure over there is 80 to 100 pounds less than the max that we are seeing in the heart of the Wattenberg has been. The heart of our acreage has been the Greeley area than the Northern flank. DCP Midstream has their Lucerne II Plant coming on. Originally, it was April. We had a tough stretch of cold in November and then really got over the holidays. We just reached out to them earlier this week. According to them, it is looking more like May 30 delayed.

Those impacts are Wiedeman and our Geis pads drastically. We will strategically let that line out and then get ourselves into the system at that point in time because they feel like that is going to be able to draw up pressures to a level where we can go ahead and produce the flash production the way we need to.

Jon Kruljac, VP Capital Markets and IR
David, its Jon. Our intension right now is to complete all 29 wells and Cannon this fiscal year probably staggering it, look for an update from us in the next six to eight weeks. We are still working on some of these cost equations and some other timing issues. Our intension is still to get all these wells online before fiscal year-end. If there is any change from that,we’ll give you that in an update. We will try to give you some more detail on when we were scheduling with our frack spreads these pads on a timely basis. We had originally planned to have one of the pads on production during the last couple of weeks of February and we want to give you a heads up that does not going to happen and we will give you some details what we think we are going to bring on in the third and fourth quarter on a timing basis.

William Scaff, Co-CEO, Treasurer
On the drilling side, yes, we are going to continue to drill with that 11 Cannon wells that we were going to be moving off this Weis pad, moving right over the Cannon and drill those 11 wells.

David Beard, IBERIA
Good, good. That makes a lot of sense to me. Smart decisions. Just if I could sneak in a follow-up on a related topic, what is your view on the acquisition environment and just maybe if you could give us a little color on what is coming in over the transom?

William Scaff, Co-CEO, Treasurer
Well, I think as time continues to move on depending where pricing goes. I think we are going to continue to get more targeted risk and there is going to be a lot of opportunities out there. We are talking, looking and here is where you make companies. We are actually excited about the opportunities that are out there, and we are going to continue to be looking at where those opportunities fit for Synergy.

Jon Kruljac, VP Capital Markets, IR
David, this is Jon. Just a follow-up, as you know in the past from the acquisitions we have made or people in organizations that we have been talking to for months or years before we actually got something done. That continues where we have a variety of discussions that a variety of levels of development and we are starting to see some different posture from people. Right now, for us, it was focused on getting our cost down inline so that if we do make an acquisition, we know what we can develop, at what prices, at what economic return.

David Beard, IBERIA
Well, thank you very much for all the time. I appreciate it.

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