Past year: ▼ 20%(3.12 – 6.16 USD)
Each one in plain English, with the numbers worked through for a shareholder.
11 July 2014material agreement▲ GoodMajor
On July 7, 2014 Synergy signed a turn-key contract with Ensign Drilling Company of North America for a third automated rig to drill at least eight horizontal wells on its Wiedeman lease, estimated at $7,200,000 to $10,000,000, with an option to keep the rig pad by pad. It also extended Ensign Rig #134 through December 31, 2014; Rig #131 stays on its original terms through the end of 2014. This continues the drilling build-up.
10 June 2014debt financing▲ GoodMajor
On June 4, 2014 Synergy amended its credit facility again, raising the borrowing base from $90 million to $110 million with the maximum commitment staying at $300 million. Maturity moved from November 2016 to May 29, 2019, and pricing changed to prime +0.5-1.5% or LIBO +1.75-2.75% with a 2.5% minimum rate. The lenders listed are Community Banks of Colorado, CoBiz, Amegy, Suntrust and KeyBank; Texas Capital Bank, named in December 2013, is not listed. The filing does not state the amount drawn.
31 Mar 2014capital raising announcement● Neutral
On March 28, 2014 Synergy issued restricted shares for assets: 62,877 to 16 people and 40,435 to director George Seward for oil and gas leases, and 20,626 to two people for a disposal well. This is small further dilution and continues paying for leases in stock, including to Seward.
3 Jan 2014capital raising announcement● Neutral
On December 30, 2013 Synergy issued 15,883 restricted shares to director George Seward and 14,201 to two other people for helping obtain oil and gas leases. This is a small further dilution and continues paying Seward in shares for leases.
26 Dec 2013debt financing▲ GoodMajor
On December 20, 2013 Synergy amended its credit facility, raising the borrowing base from $75 million (June 2013) to $90 million, with the maximum commitment raised from $150 million to $300 million. Texas Capital Bank, Suntrust and Key Bank join the lenders, due November 28, 2016, at prime +0-1% or LIBO +2.5-3.25%. The filing does not state how much is drawn. This follows the cash payments for the November acquisitions, though the filing does not link them.
18 Nov 2013asset acquisition disposition▲ GoodMajor
The September 2013 acquisition closed on November 12, 2013 for about $20,500,000: $17,800,000 cash plus 301,339 restricted shares valued at $2,700,000. Synergy holds 100% working interest (75% net revenue interest) in 21 producing Wattenberg wells and operates them. This resolves the pending deal as announced.
18 Nov 2013asset acquisition disposition▲ GoodMajor
The August 2013 Wattenberg acquisition closed on November 13, 2013 for about $17,000,000: $12,750,000 cash plus 550,518 restricted shares valued at $4,250,000. Synergy now holds about 27.5% working interest (22% net revenue interest) in 45 producing wells and operates 44 of them. The price and well count came in below the signing announcement ($17.5M; 47 wells), though the filing does not explain why. This resolves the pending deal.
19 Sept 2013material agreement▲ GoodMajor
On September 16, 2013 Synergy agreed to buy 21 producing Wattenberg wells and about 800 net acres from an unnamed independent company for $20,500,000 ($17,800,000 cash and $2,700,000 in restricted shares), giving it 100% working interest (75% net revenue interest) with Synergy as operator. Closing depends on title review and other normal conditions. This is a second pending acquisition alongside the August 2013 deal.
3 Sept 2013material agreement▲ GoodMajor
On August 27, 2013 Synergy agreed to buy Wattenberg oil and gas properties from an unnamed independent company for $17,500,000 ($13,125,000 cash and $4,375,000 in restricted shares). They include 38 wells operated by the seller, 9 non-operated wells, a disposal well and about 3,639 gross (1,000 net) acres, at an average ~27.5% working interest. Closing depends on title review and other normal conditions. This adds to the company's Wattenberg growth by acquisition and is partly paid in new shares.
26 July 2013material agreement▲ GoodMajor
On July 24, 2013 Synergy amended its April 19, 2013 drilling contract with Ensign United States Drilling, adding 21 wells to the original four for a total of 25 wells at about $1,100,000 per well. The 21 added wells are all in the Wattenberg Field and are expected to be drilled over the next 12 months, which expands the drilling plan.
15 July 2013business combination● Neutral
Synergy filed a preliminary proxy for its August 20, 2013 annual meeting (record date July 1, 2013; 68,925,330 shares outstanding). Shareholders vote on electing directors, lowering the quorum to one-third, raising the option plan from 2,000,000 to 5,000,000 shares, issuing shares to director George Seward for helping acquire leases, and ratifying EKS&H as auditor; the board recommends voting for the proposals. This continues the practice of paying director Seward in shares for leases, now put to a shareholder vote, and the option increase could add dilution.
19 June 2013material agreement▲ GoodMajor
The underwriters exercised their over-allotment option in full on June 14, 2013, and the offering of 13,225,000 shares at $6.25 closed June 19, 2013, with net proceeds of about $78,273,000. This completes the June offering and resolves the open over-allotment question; the full amount is dilutive.
14 June 2013material agreement● NeutralMajor
On June 13, 2013 Synergy agreed with Johnson Rice & Company and underwriters to sell 11,500,000 shares at $6.25, plus a 30-day option for 1,725,000 more. Expected net proceeds are about $68,031,000, with closing around June 19. It uses the shelf registration effective April 23, 2013. The filing does not state a use of proceeds. This is a second underwritten offering after December 2011 and is dilutive.
7 June 2013material agreement▲ Good
On June 3, 2013 the borrowing base under the $150 million credit facility led by Community Banks of Colorado rose from $47 million to $75 million. The facility matures November 2016 at a current rate of about 3.45%. The filing does not say how much is drawn. This increases available borrowing under the November 2012 facility.
6 June 2013capital raising announcement● Neutral
On May 31, 2013 Synergy issued restricted shares: 202,824 to 21 persons and 22,202 to director George Seward for leases, 101,512 to one person for producing properties, 100,000 to an oil and gas exploration company under the earlier agreement disclosed in an 8-K (apparently the Vecta deal), and 36,334 to employees under the Stock Bonus Plan. This adds modest dilution and continues paying for leases in stock, including to director Seward.
19 Mar 2013asset acquisition disposition▲ GoodMajor
The Vecta exploration agreement closed March 13, 2013. Synergy paid a leasehold reimbursement fee of $2,928,502 cash (up from $2,841,855 first stated) plus 100,000 restricted shares valued at about $660,000 (up from about $640,000). The partners plan seismic work and a horizontal Greenhorn or Niobrara test well, with the first Greenhorn well contemplated by October 31, 2013. This resolves the March 1 pending agreement.
19 Mar 2013asset acquisition disposition● Neutral
This filing, labeled as an acquisition-completion report, actually contains the same text as the March 7, 2013 Vecta agreement report (35%/65% interests, $2,841,855 cash plus 100,000 shares, initial Greenhorn well by October 31, 2013) and appears to be a duplicate. It adds no new facts; closing is reported in the separate filing of the same date.
7 Mar 2013material agreement▲ GoodMajor
On March 1, 2013 Synergy signed an exploration agreement with Vecta Oil and Gas, Ltd. covering Greenhorn-area and Wattenberg-extension leases in Morgan and Weld Counties. Synergy would hold 35% of about 101,675 gross (45,661 net) acres and 65% of about 3,718 gross (2,983 net) acres, paying $2,841,855 cash plus 100,000 restricted shares (about $640,000). An initial Greenhorn test well is contemplated by October 31, 2013, with Synergy as operator. Closing is subject to title review. This builds on the Greenhorn focus stated with the March 2012 DeClar/Wolf Point leases.
7 Dec 2012asset acquisition disposition▲ GoodMajor
On December 5, 2012 Synergy completed the Orr Energy purchase agreed in October: 36 producing Wattenberg wells and about 3,933 gross (3,196 net) acres, for $30,000,000 cash plus 3,128,422 restricted shares (valued at $12,000,000). About 1,000 undeveloped acres lie northeast of Wattenberg. This resolves the October pending deal and adds dilution from the new shares.
3 Dec 2012debt financing▲ GoodMajor
On November 28, 2012 Synergy restated its credit line as a multi-bank facility, adding CoBiz Bank (Colorado Business Bank) and Amegy Bank alongside Community Banks of Colorado as agent. The initial borrowing base is $47,000,000 (up from the $30M limit), within a $150,000,000 maximum commitment, due November 28, 2016, secured by substantially all producing wells and developed leases. Interest is prime plus 0-1% or LIBO plus 2-3.25%. This replaces the earlier November 2014 maturity and greatly increases borrowing capacity.
25 Oct 2012material agreement● Neutral
This amended filing repeats the October 2012 report (credit line raised from $20M to $30M; agreement to buy Orr Energy's 36 wells and about 3,933 gross acres for $42M in cash and shares) with the two exhibits now attached: the loan amendment and the purchase agreement. No new terms are stated.
24 Oct 2012material agreement▲ GoodMajor
On October 18, 2012 the credit line (now with Community Banks of Colorado, successor to Bank of Choice) was raised from $20,000,000 to $30,000,000, with about $3,000,000 borrowed. On October 23 Synergy agreed to buy from Orr Energy, LLC 36 producing Wattenberg wells and about 3,933 gross (3,196 net) acres for $42,000,000: $30,000,000 cash plus $12,000,000 in restricted shares. Closing depends on title review and customary conditions. This is the company's largest purchase in this record and would add dilution.
25 Apr 2012material agreement● Neutral
On April 23, 2012 Synergy raised the maximum on its Bank of Choice revolving credit line from $15,000,000 to $20,000,000, subject to collateral requirements. Other terms (prime-rate interest, November 30, 2014 expiry) were unchanged, and about $5.4 million was borrowed. This continues the November 2011 facility; the filing says proceeds go mainly to repay prior debt and fund acquisition, drilling and completion costs.
16 Mar 2012asset acquisition disposition● Neutral
The DeClar and Wolf Point deal closed March 14, 2012 for $2,200,000 cash and 155,770 shares, more than the 142,436 shares first agreed. The leases cover about 17,000 gross (8,875 net) acres in Weld, Morgan and Larimer Counties, with no producing wells yet, and the company says it will focus on the horizontal Greenhorn zone. The acreage is larger than the roughly 8,740 acres first described, though the filing does not explain the difference.
23 Feb 2012material agreement● Neutral
On February 20, 2012 Synergy agreed to buy leases covering about 8,740 acres in the D-J Basin from DeClar Oil & Gas and Wolf Point Exploration for $2,200,000 cash plus 142,436 restricted shares. There are no producing wells; Synergy would hold 100% working interest and must drill two Niobrara/Codell test wells within two years or about 80 acres revert to DeClar. Closing is expected before March 15, 2012, subject to title review.
30 Dec 2011capital raising announcement● Neutral
On December 30, 2011 Synergy issued 188,137 shares to director George Seward for helping acquire leases, 225,146 restricted shares to 16 persons for leases and joint venture interests, and 5,000 shares to an employee for services. It adds a small amount of dilution and continues paying a director in stock for lease work, as in March 2011.
16 Dec 2011material agreement▲ GoodMajor
On December 16, 2011 Synergy agreed with Northland Securities and underwriters to sell 12,727,273 shares in a public offering at $2.75, with a 30-day option for up to 1,909,090 more. Expected net proceeds are about $32,525,000 excluding the option, with closing expected around December 21. Proceeds go to Wattenberg development drilling and general purposes. The stock is now listed on NYSE Amex, and the offering uses an existing shelf registration. This is the company's first underwritten public offering in this record and is dilutive.
2 Dec 2011debt financing▲ GoodMajor
On November 30, 2011 Synergy signed a new Bank of Choice revolving credit line of up to $15,000,000, at the greater of 3.25% or prime, due November 30, 2014 and secured by substantially all producing wells and developed leases. It borrowed about $5,342,000 right away to repay the loan owed to Petroleum Exploration and Management, the note issued in the May 2011 acquisition. This replaces the related-party debt with bank debt and extends borrowing beyond the June 2011 line (the filing does not say whether that line was ended).
30 Sept 2011material agreement● Neutral
On September 29, 2011 the board approved buying lease interests from CEO and director Ed Holloway for $30,700, another small related-party deal. The two Wattenberg leases (about 92 and 213 gross acres, one producing well each) give Synergy 6.95% and 12.30% working interests.
26 July 2011listing compliance notice▲ GoodMajor
the New York Stock Exchange certified SRC Energy Inc.'s securities for listing, clearing them to begin trading.
