EX-99.2 3 syrg_ex992.htm EXHIBIT 99.2 syrg_ex992.htm
Exhibit 99.2
 
 
Corporate Management Presentation
December 2011
NYSE Amex: SYRG
October
 
 
 
Disclaimer: Forward Looking
Statements
• This presentation includes forward-looking statements within the meaning of Section 27-A
 of the Securities Act of 1933, and Section 21-E of the Securities Exchange Act of 1934.
• Such statements include declarations regarding the intent, belief, or current expectations
 of the company and its management.
• Prospective investors are cautioned that any such forward-looking statements are not
 guarantees of future performance, and involve a number of risks and uncertainties that can
 materially affect actual results as identified from time to time in the Company’s reports.
• Forward looking statements provided herein as of a specified date are not hereby
 reaffirmed or updated.
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Introductions - Key Senior
Executives
Company’s Management has Owned/Operated 300+ D-J Basin Wells in the Last 30+ years.
Key Corporate Executives
§ Edward Holloway, President, Chief Executive Officer, Director
 – 25+ Years of Oil and Gas Executive Leadership
 – Director of Synergy since June 2008
 – Former Co-Founder, Cache Exploration Inc.
 – Co-Founder, Petroleum Management, LLC and Petroleum Exploration & Management, LLC
 – Board Member of Denver-Julesburg Petroleum Association
 – Past president of Colorado Oil and Gas Association - 1990
§ William Scaff Jr., Vice President, Secretary, Treasurer, Director
 – 20+ Years of Oil and Gas Executive Leadership
 – Director of Synergy since June 2008
 – Former Dresser Industries Area Manager and Total Petroleum Regional Manager
 – Co-Founder, Petroleum Management, LLC and Petroleum Exploration & Management, LLC
 – Board of Trustee of Colorado/Wyoming Petroleum Marketers Association
§ Frank Jennings, Principal Financial Officer
 – 20+ years of accounting and finance experience; MBA from Indiana University
 – Joined Synergy full time in March 2011, after serving on a part time basis since 2008
 – Five years as Chief Financial Officer of Gold Resource Corporation (NYSE Amex: GORO)
 – Ten years as CPA with PriceWaterhouseCoopers in Houston
 – Four years as Audit Manager with The Walt Disney Companies
 – Experience in oil and gas drilling, services, exploration and production industry
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www.synergyresourcescorporation.com
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Introductions - Board of Directors
§ George Seward was appointed as a Director in July 2010. Mr. Seward co-founded
 Prima Energy in 1980 and served as its Secretary until 2004 when Prima was sold to
 Petro-Canada for $534 million.
§ The management team has significant oil and natural gas experience combined with
 financial management expertise.
(*) Denotes independent director.
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Company Overview
§ Independent operator in the exploration and production of crude oil and natural gas
 focusing on the Denver-Julesburg Basin
§ Expand acreage position in the thriving Denver-Julesburg
 Basin and develop low cost and low risk vertical wells with
 nearly a 100% success rate
§ Favorable oil and gas contracts in place
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Strengths of the Wattenberg
Field
Low Drilling and
Completion Costs
Rapid Return on
Investment
High Success Rate
(99% of Wells in Wattenberg Field
Are Completed)
Low Lifting Costs
($2.13 per BOE)
Liquid-Rich
Natural Gas
(High BTU Content)
Long Life Production
and Reserves
(30+ Years)
Takeaway Capacity
(Enhanced in Rocky
Mountain Region)
Horizontal Drilling
in Niobrara & Codell
§ Efficient use of capital
§ Build reserves and cash flow to fund future drilling program
§ Significant upside potential from multiple pay zones and horizontal wells targeting the
 Niobrara & Codell
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F & D Costs
($16.62 per BOE)
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Largest Producers in the Wattenberg and D
-J Basin
Source: Bloomberg, Company Presentations
Market values as of market close on November 30, 2011
NYSE Amex: SYRG
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§ Anadarko Petroleum (NYSE:APC) - Market Cap $40.31B
 – Believes the play has net resources potential of 500 million to 1.5 billion BOE; believes it has 1,200 -
 2,700 future drilling locations with EURs of 300,000-600,000 per well and expects to drill 160
 horizontal wells in 2012 (up from 40 in 2011) utilizing 7 rigs in the Basin
§ Noble Energy (NYSE:NBL) - Market Cap $17.16B
 – Holds 400,000 net acres in the Wattenberg, plans to operate 5-6 rigs in 2012 and is targeting 8-10
 wells to be completed per month in 2012
§ Chesapeake Energy Corporation (NYSE:CHK) - Market Cap $15.87B
 – Recently sold part of their interest in the Niobrara for over $4,800 per acre total consideration
§ EOG Resources (NYSE:EOG) - Market Cap $28.01B
 – Has 3 rig drilling program in the region and plans on 40 new wells in 2011
§ EnCana (NYSE:ECA) - Market Cap $14.82B
 – Among the largest independent producers in the United States with a significant presence
  in the Wattenberg and Rocky Mountain Region
§ Marathon Oil (NYSE:MRO) - Market Cap $19.74B
 – Entered into a joint venture with Marubeni Corp, in which a subsidiary of Mauribeni
 will pay $270 million for a 30% working interest in MRO’s 180,000 net acres in the Niobrara
 formation, equating to roughly $5,000 per acre
§ PDC Energy (Nasdaq:PETD) - Market Cap $774.92mm
 – The Niobrara continues to outperform the company's expectations; EURs in core Wattenberg Field
 acreage likely to rise substantially above 300 MBOE; plans to drill 14 wells in 2011
§ Bill Barrett Corporation (NYSE:BBG) - Market Cap $1.86B
 – Paid $150 million for 28,000 net acres and 650 BOE per day of production in the D-J Basin
In a recent APC research report, Bank of America
Merrill Lynch estimates individual horizontal well NPVs
of ~$7mm and IRR of ~70% in the Wattenberg Field
 
 
 
Leased Acreage
§ Significant number of vertical wells in the oil and high-liquids portion of the Wattenberg Field in the D
 -J Basin (Codell/Niobrara/J-Sands formations)
§ Highly prospective for the horizontal Niobrara
§ Advancements in horizontal drilling, coupled with the relatively untapped potential of the Niobrara
 creates a significant opportunity for growth in SYRG’s core geographic area
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Northern Weld and Morgan Counties, CO
2,072 net (high liquids)
Wattenberg Field, CO
9,717 net (high liquids)
Chase County, NE
48,321 net (oily)
Dundy County, NE
31,551 net (oily)
Hayes County, NE
34,315 net (oily)
Hitchcock County, NE
2,492 net (oily)
Yuma & Washington Counties, CO
31,740 net (dry gas)
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Niobrara Horizontal Well
Participation
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Recent AFE’s:
•Synergy has elected to participate in two horizontal Niobrara wells
with notable operators. The two wells have been permitted and are
expected to be drilled in the first quarter of 2012.
•Synergy expects to receive six to ten more AFE’s on horizontal wells
within the near future.
Wattenberg
Field
25% Working Interest: PDC Energy Operated
Leffler 14-1H
W/2 Sec 1, T6N-R66W
25% Working Interest: Noble Energy Operated
Wake E24-77HN
W/2 Sec 24, T6N-R65W
 
 
 
Leveraging New Technology
New technology leads to improved drilling
efficiencies, reduced costs and increased
production; including:
The use of directional drilling:
 § Reduces drilling costs, increases drilling success
 rates and reduces environmental impact - Pad
 drilling
 § Can drill multiple wells from one pad targeting the J-
 Sand/Codell/Niobrara formations
New well completion and stimulation techniques:
 § Can triple the extraction of reserves over the life of
 the well - Refrac potential
 § Increases cash flow and investment returns
Advanced horizontal drilling techniques:
 § Unlock Niobrara potential
NYSE Amex: SYRG
www.synergyresourcescorporation.com
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Industry Leaders Projected
 
 
 
Vertical Well Strategy
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NYSE Amex: SYRG
Maximizing the Barrels of Oil Equivalent per Vertical Well:
By drilling to the J-Sand first, then plugging and moving up-pipe to
the Codell and Niobrara zones, Synergy believes it can maximize
the BOE’s per well with an estimated ultimate recovery of 120,000
BOEs per well (with refrac)
Analyst Marty Beskow, CFA, of Northland Capital Markets has
estimated a $1.1mm NPV per vertical well by exploiting this strategy
 
 
 
Financial Profile and Recent
Developments
FINANCIAL PROFILE: NYSE Amex: SYRG
(metrics in millions except per share statistics; as of 11/30/11)
§ 52 Week Stock Price Range: $2.20 - $4.90
§ Share Price As Of Nov 30, 2011 - $3.25
§ Market Capitalization: $117.32
§ Shares Outstanding: 36.10
§ Warrants Outstanding: 14.93
 (1mm @ $10 / 13.1mm @ $6 / 0.8mm @$1.62)
§ Options Outstanding: 4.6
 (2mm @ $10 / 2mm @ $1 / 0.6mm @ $3.40)
§ Current Float: 67.3%
§ Avg. Vol - 3 Months: 23,428
§ Insiders Ownership: 32.7%
OPERATING PROFILE
(metrics in millions and represent FYE 8/31/11)
§ Revenue: $10.0
§ EBITDA: $5.7
§ Cash And Short-term Investments: $9.5
§ Debt Outstanding: $5.2
§ Total Assets: $63.7
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Nov 30, 2011
Increased Revolving Line of
Credit to $15mm
 
 
 
Revenue Mix for MRQ:
Revenue Growth Per Quarter
Oil = 71%
Gas = 29%
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NYSE Amex: SYRG
Average Sales Price per Quarter:
 
1Q Nov 2009
2Q Feb 2010
3Q May 2010
4Q Aug 2010
1Q Nov 2010
2Q Feb 2011
3Q May 2011
4Q Aug 2011
Oil (Bbls)
$ 58.12
$ 69.44
$ 73.22
$ 85.37
$ 72.39
$ 83.64
$ 95.15
$ 89.91
Gas (Mcf)
$ 3.67
$ 7.05
$ 4.90
$ 7.57
$ 3.48
$ 4.40
$ 5.34
$ 6.22
 
 
 
 
 
 
1P Reserve Growth by Year (PV-
10)*
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Total 1P PV-10 = $232,957
Total 1P PV-10 = $16,557,726
* Reserve estimates prepared by Ryder Scott Company
 
 
 
Summary
The management team has a well-defined and clear plan for creating shareholder value which
includes:
 § Continuing to expand our acreage footprint through leases and acquisitions
 § Utilize an aggressive drilling program in proven low-risk areas with predicable rates-
 of-return
 § Leverage management’s significant experience and expertise in the basin
www.synergyresourcescorporation.com
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