UPDATE: Stifel Initiates Coverage on Synergy Resources, Confident in Management Team

In a report published Tuesday, Stifel analyst Michael Scialla initiated coverage on Synergy Resources Corp

with a Hold rating. According to the report, with a seasoned management team well versed in the history and nuances of Colorado's Wattenberg Field, SYRG has nimbly assembled a meaningful footprint in the region amid accelerating horizontal development of the Niobrara and Codell formations. “Synergy is in the early stages of exploiting 24,000 net acres in Wattenberg that could hold 608 potential drilling locations,” the report noted. “Development of just 37 of these sites in FY14 is expected to drive y/y production growth of more than 100%. Another 20,000 net acres located northeast of Wattenberg could add to the company's Niobrara/Codell drilling inventory while large positions in eastern Colorado (shallow biogenic gas) and western Nebraska (shallow oil exploration) represent option value for investors.” SYRG closed Monday at $8.95 with shares trading up at 2.87 percent.