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What: Shares of Synergy Resources Corp (NYSEMKT:SYRG) 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.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.