Synergy Resources Corp. (SYRG)

[Timothy Smith]

I don't there is anything major to worry about at the moment. Here are some excerpts from the conference call.

As we reported in the release, we continued to successfully execute on our vertical and directional drilling program in the Wattenberg Field of the DJ Basin driving strong growth and production and revenue for the quarter. Revenue increased 86% over the year-ago quarter totaling 8.3 million. Operating income was up more than 119% to 3.5 million and net income totaled 2.2 million or $0.04 per share.

Fiscal Q1 2012 did not include any income tax expense while fiscal Q1 2013 included a deferred tax expense of 1.3 million. Keep in mind that's equivalent to $0.03 per share. The year results reflect an 89% increase in oil and gas production over the same year-ago quarter to 150,909 barrels of oil equivalent or BOE. This equates to an average of 1,658 BOE per day during the quarter versus the daily average of 876 BOE per day a year ago and a daily average of 1,270 BOE per day during the quarter ended August 31, 2012.

Sequential production growth on a quarterly basis was 29%. We continued to grow rapidly in the face of lingering high line pressure within the existing gathering and processing systems. As operator, we drilled 25 vertical directional wells and brought 15 into production during the quarter. In December, we drilled two more wells. This increased the total number of wells we have drilled since inception as an operator to 134 with 112 brought into commercial production so far. And as of December 31, 2012, the remaining 22 were being completed. Unless we experience weather problems or unforeseen delays, the wells in progress should commence production during the second quarter.

As of the end of December, our overall well count including operated wells, non-operated wells and producing wells acquired from our other owners included 250 gross production wells which equates to 197 net wells and 23 gross wells in progress. This productive activity has led to an increase in our estimated proved reserves. We currently estimate proved reserves of 5.2 million barrels of oil and 33.6 billion cubic feet of gas as of November 30, 2012. The estimated present value of these reserves before tax and discounted 10% is 160 million. Our next completed reserve analysis will be prepared with an effective date of February 28, 2013.

I'd like to now turn the call over to our CFO, Monty Jennings, to take us through the details of our financial results for the quarter.

More: http://seekingalpha.com/article/1103491-synergy-resources-ceo-discusses-q1-2013-results-earnings-call-transcript