KOG In The News Again; This Time In Nebraska -- August 18, 2014; COP Dependent On North American Shale To Keep Growing

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For investors only, from SeekingAlpha:

• Synergy Resources  receives a Buy rating from Canaccord Genuity, which initiates coverage of the oil and gas company with a $17 price target, 33% above the stock's Friday closing price.
• The firm describes SYRG as "Kodiak 2.0" - Kodiak Oil & Gas has jumped 33% YTD, 53% from a year ago, and 11-fold over the past five years.
• Separately, SYRG enters into a joint development agreement with KOG to drill wells and develop acreage in Nebraska.

From Yahoo!In-Play:

Synergy Resources enters into joint development agreement to drill wells in Nebraska Oil Play : Co has entered into a Joint Development Agreement with Johnson Production Corporation and Kodiak Petroleum, Inc., both Colorado corporations, to drill oil wells and develop acreage in Dundy County Nebraska.

• The Agreement covers a defined area of 8,011 net mineral acres in Dundy County, Nebraska, and provides for the drilling of up to ten wells. 
• It has an initial term of one year, and annual extension provisions for an additional four years. JPC or Kodiak will be the operator for all wells. 
• For each well that JPC and Kodiak drill, they will pay 5/8ths of the costs to drill and complete, and will thereby earn a 50% working interest in the well and the spacing unit. 
• In addition, for each well that they drill, they will earn a 5% interest in Synergy's interest in the remainder of the Contract Area. 
• If all ten wells are drilled, JPC and Kodiak will earn a 50% interest in Synergy's interest in the Contract Area. Synergy will pay 3/8ths of the cost of each well and will retain both a 50% working interest and an overriding royalty interest.

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COP: Dependent On North American Shale To Keep Growing

From Seeking Alpha:

Despite the strong 38% production growth in the Eagle Ford and Bakken during 2Q14, ConocoPhillips is only projecting volume growth of 3 to 5%.

The shale plays combined for 208 MBoe/d for the quarter so the production isn't immaterial. Along with other North American unconventional plays, the company expects growth in this segment to average 22% through 2017 to reach production totals of over 350K boepd.

With all the major plays struggling, the unconventional growth comes at a cost of not focusing on the major projects and further constraining production from the established areas. The main set back comes from North American natural gas production that is forecast to decline up to 6% on an annualized basis.