CK Cooper Hopeful About Exploration and Production for Synergy Resources

According to a research report published this morning, CK Cooper maintains a Buy rating and a price target of $5.00 for Synergy Resources Corporation SYRG. CK Cooper mentions in the report, “The northeastern Colorado acreage could turn out to be an extension to the Wattenberg Field, as drilling activity by industry is moving in that direction. And the leasehold in western Nebraska may be prospective for development of a number of conventional oil formations. Our $5.00 price target is supported by our estimated NAV/SHARE of $5.38, which allocates $2.57 for proved reserves adjusted for balance sheet items, $1.82 for unbooked horizontal Niobrara development in Wattenberg Field, $0.45 for unbooked vertical wells in Wattenberg Field dually completed in the Niobrara and Codell formations, and $0.54 for undeveloped acreage outside the core Wattenberg Field. At current levels, SYRG trades roughly on par with proved reserve value, based on a flat, perpetual-case, benchmark commodity price scenario of $90/BBL oil and $4.00/MCF gas, suggesting that the upside potential could be secured for free.” Synergy Resources closed yesterday at $2.65