Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Synergy Resources Corp (SRCI) jumped as much as 12% briefly today after announcing a new drilling contract.
So what: Synergy has amended its turnkey drilling contract with Ensign United States Drilling to include Rig #131 for all of 2014. The rig is an automated drilling rig and is expected to help drilling proceed more efficiently and will allow for extended reach lateral wells.
Now what: This is a nice addition to the drilling program and in 2014 we'll see if it translates to increased production. I'm not buying on this news alone and would like to see some improved financials before thinking too much of this deal. Investors are already expecting a lot of growth this year from Synergy and today's bump increases expectations even more.
