| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------|

| o | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------|

| SYNERGY RESOURCES CORPORATION                          |
|--------------------------------------------------------|
| (Exact Name of Registrant as Specified in its Charter) |

| Colorado                                                      |   | 20-2835920                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |

| 20203 Highway 60, Platteville, Colorado 80651       |
|-----------------------------------------------------|
| (Address of Principal Executive Offices) (Zip Code) |

| N/A                                                                               |
|-----------------------------------------------------------------------------------|
| Former name, former address, and former fiscal year, if changed since last report |

|   | Large accelerated filer  | x      | Accelerated filer         | o      |
|--------|-------------------------------|--------|---------------------------|--------|
|   | Non-accelerated filer    | o      | Smaller reporting company | o      |
|   |                          |   |                      |   |

----

 

 

----

|                                 | Page                                                                                                          |
|--------------------------------------|---------------------------------------------------------------------------------------------------------------|
| Part I – FINANCIAL INFORMATION |                                                                                                          |   |
|                                 |                                                                                                          |   |
| Item 1.                              | Financial Statements                                                                                          |   |
|                                 |                                                                                                          |   |
|                                 | Balance Sheets as of November 30, 2014 (unaudited)  and August 31, 2014                                  | 3 |
|                                 |                                                                                                          |   |   |
|                                 | Statements of Operations for the three months ended November 30, 2014 and November 30, 2013 (unaudited)       | 4 |
|                                 |                                                                                                          |   |   |
|                                 | Statements of Cash Flows for the three months ended November 30, 2014 and November 30, 2013  (unaudited) | 5 |
|                                 |                                                                                                          |   |   |
|                                 | Notes to Financial Statements (unaudited)                                                                     | 6 |
|                                 |                                                                                                          |   |   |
| Item 2.                              | Management's Discussion and Analysis of Financial Condition and Results of Operations                         | 29 |
|                                 |                                                                                                          |   |   |
| Item 3.                              | Quantitative and Qualitative Disclosures About Market Risk                                                    | 44 |
|                                 |                                                                                                          |   |
| Item 4.                              | Controls and Procedures                                                                                       | 44 |
|                                 |                                                                                                          |   |   |
| Part II - OTHER INFORMATION          |                                                                                                          |   |
|                                 |                                                                                                          |   |   |
| Item 6.                              | Exhibits                                                                                                      | 45 |
|                                 |                                                                                                          |   |   |
| SIGNATURES                           | 46                                                                                                            |

----

| ASSETS                                                                |   | November 30,2014 |    |   | August 31,2014 |   |
|-----------------------------------------------------------------------|--------|------------------|---------|--------|----------------|--------|
|                                                                  |   | (unaudited)      |    |   |                |   |
| Current assets:                                                       |   |                  |    |   |                |   |
| Cash and cash equivalents                                             |   | $                | 47,111  |   |           | $      | 34,753 |   |
| Accounts receivable:                                                  |   |             |    |   |           |   |   |   |
| Oil and gas sales                                                     |   |             | 21,059  |   |           |   | 16,974 |   |
| Joint interest billing and other                                      |   |             | 24,964  |   |           |   | 15,398 |   |
| Commodity derivative                                                  |   |             | 11,984  |   |           |   | 365 |   |
| Earnest money deposit                                                 |   |             | 6,250   |   |           |   | - |   |
| Other current assets                                                  |   |             | 1,074   |   |           |   | 750 |   |
| Total current assets                                                  |   |             | 112,442 |   |           |   | 68,240 |   |
|                                                                  |   |             |    |   |           |   |   |   |
| Property and equipment:                                               |   |             |    |   |           |   |   |   |
| Evaluated oil and gas properties, full cost method, net               |   |             | 295,396 |   |           |   | 275,018 |   |
| Unevaluated oil and gas properties                                    |   |             | 126,994 |   |           |   | 95,278 |   |
| Other property and equipment, net                                     |   |             | 4,849   |   |           |   | 9,104 |   |
| Property and equipment, net                                           |   |             | 427,239 |   |           |   | 379,400 |   |
|                                                                  |   |             |    |   |           |   |   |   |
| Commodity derivative                                                  |   |             | 4,534   |   |           |   | 54 |   |
| Other assets                                                          |   |             | 850     |   |           |   | 848 |   |
|                                                                  |   |             |    |   |           |   |   |   |
| Total assets                                                          |   | $                | 545,065 |   |           | $      | 448,542 |   |
|                                                                  |   |             |    |   |           |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                  |   |             |    |   |           |   |   |   |
|                                                                  |   |             |    |   |           |   |   |   |
| Current liabilities:                                                  |   |             |    |   |           |   |   |   |
| Trade accounts payable                                                |   | $                | 354     |   |           | $      | 1,747 |   |
| Well costs payable                                                    |   |             | 69,511  |   |           |   | 71,849 |   |
| Revenue payable                                                       |   |             | 25,251  |   |           |   | 14,487 |   |
| Production taxes payable                                              |   |             | 18,983  |   |           |   | 14,376 |   |
| Other accrued expenses                                                |   |             | 1,818   |   |           |   | 817 |   |
| Commodity derivative                                                  |   |             | -       |   |           |   | 302 |   |
| Total current liabilities                                             |   |             | 115,917 |   |           |   | 103,578 |   |
|                                                                  |   |             |    |   |           |   |   |   |
| Revolving credit facility                                             |   |             | 77,000  |   |           |   | 37,000 |   |
| Commodity derivative                                                  |   |             | -       |   |           |   | 307 |   |
| Deferred tax liability, net                                           |   |             | 33,296  |   |           |   | 21,437 |   |
| Asset retirement obligations                                          |   |             | 5,109   |   |           |   | 4,730 |   |
| Total liabilities                                                     |   |             | 231,322 |   |           |   | 167,052 |   |
| Commitments and contingencies (See Note 13)                           |   |             |    |   |           |   |   |   |
|                                                                  |   |             |    |   |           |   |   |   |
| Shareholders' equity:                                                 |   |             |    |   |           |   |   |   |
| Preferred stock - $0.01 par value, 10,000,000 shares authorized:      |   |             |    |   |           |   |   |   |
| no shares issued and outstanding                                      |   |             | -       |   |           |   | - |   |
| Common stock - $0.001 par value, 200,000,000 shares authorized:       |   |             |    |   |           |
| 79,854,500 and 77,999,082 shares issued and outstanding, respectively |   |             | 80      |   |           |   | 78 |   |
| Additional paid-in capital                                            |   |             | 276,893 |   |           |   | 265,793 |   |
| Retained earnings                                                     |   |             | 36,770  |   |           |   | 15,619 |   |
| Total shareholders' equity                                            |   |             | 313,743 |   |           |   | 281,490 |   |
|                                                                  |   |             |    |   |           |   |   |   |
| Total liabilities and shareholders' equity                            |   | $                | 545,065 |   |           | $      | 448,542 |   |

----

|                                      |   | Three Months Ended |       |
|-------------------------------------------|--------|--------------------|------------|
|                                      |   | November 30,       |       |   | November 30, |   |
|                                      |   | 2014               |       |   | 2013 |   |
|                                      |   |                    |       |   |  |   |
| Oil and gas revenues                      |   | $                  | 42,538     |   |   | $ | 19,266 |   |
|                                      |   |               |       |   |   |   |   |   |
| Expenses                                  |   |               |       |   |   |   |   |   |
| Lease operating expenses                  |   |               | 3,041      |   |   |   | 1,273 |   |
| Production taxes                          |   |               | 4,178      |   |   |   | 2,016 |   |
| Depletion, depreciation                   |   |               |       |   |   |   |   |   |
|    and amortization        |   |               | 16,454     |   |   |   | 5,591 |   |
| General and administrative                |   |               | 4,110      |   |   |   | 3,168 |   |
| Total expenses                            |   |               | 27,783     |   |   |   | 12,048 |   |
|                                      |   |               |       |   |   |   |   |   |
| Operating income                          |   |               | 14,755     |   |   |   | 7,218 |   |
|                                      |   |               |       |   |   |   |   |   |
| Other income (expense)                    |   |               |       |   |   |   |   |   |
| Commodity derivative realized gain (loss) |   |               | 1,432      |   |   |   | (398 | ) |
| Commodity derivative unrealized gain      |   |               | 16,708     |   |   |   | 2,636 |   |
| Interest income                           |   |               | -          |   |   |   | 31 |   |
| Total other income                        |   |               | 18,140     |   |   |   | 2,269 |   |
|                                      |   |               |       |   |   |   |   |   |
| Income before income taxes                |   |               | 32,895     |   |   |   | 9,487 |   |
|                                      |   |               |       |   |   |   |   |   |
| Income tax provision                      |   |               | 11,744     |   |   |   | 3,387 |   |
| Net income                                |   | $                  | 21,151     |   |   | $ | 6,100 |   |
|                                      |   |               |       |   |   |   |   |   |
| Net income per common share:              |   |               |       |   |   |   |   |   |
| Basic                                     |   | $                  | 0.27       |   |   | $ | 0.08 |   |
| Diluted                                   |   | $                  | 0.26       |   |   | $ | 0.08 |   |
|                                      |   |               |       |   |   |   |   |   |
| Weighted average shares outstanding:      |   |               |       |   |   |   |   |   |
| Basic                                     |   |               | 79,008,719 |   |   |   | 73,674,865 |   |
| Diluted                                   |   |               | 80,141,152 |   |   |   | 76,044,605 |   |

----

|                                                     |   | Three Months Ended |    |
|----------------------------------------------------------|--------|--------------------|---------|
|                                                     |   | November 30,2014   |    |   | November 30,2013 |   |
| Cash flows from operating activities:                    |   |                    |    |   |  |   |
| Net income                                               |   | $                  | 21,151  |   |   | $ | 6,100 |   |
| Adjustments to reconcile net income to net               |   |               |    |   |   |   |   |   |
| cash provided by operating activities:                   |   |               |    |   |   |   |   |   |
| Depletion, depreciation and amortization                 |   |               | 16,454  |   |   |   | 5,591 |   |
| Provision for deferred taxes                             |   |               | 11,744  |   |   |   | 3,387 |   |
| Stock-based compensation                                 |   |               | 793     |   |   |   | 419 |   |
| Valuation increase in commodity derivatives              |   |               | (16,708 | ) |   |   | (2,636 | ) |
| Changes in operating assets and liabilities:             |   |               |    |   |   |   |   |   |
| Accounts receivable                                      |   |               |    |   |   |   |   |   |
|     Oil and gas sales                |   |               | (4,085  | ) |   |   | (2,064 | ) |
|     Joint interest billing and other |   |               | (9,566  | ) |   |   | (768 | ) |
| Accounts payable                                         |   |               |    |   |   |   |   |   |
|     Trade                            |   |               | (1,393  | ) |   |   | (603 | ) |
|     Revenue                          |   |               | 10,764  |   |   |   | 2,729 |   |
|     Production taxes                 |   |               | 4,607   |   |   |   | 2,145 |   |
|     Accrued expenses                 |   |               | 1,001   |   |   |   | 250 |   |
| Other                                                    |   |               | (327    | ) |   |   | 363 |   |
| Total adjustments                                        |   |               | 13,284  |   |   |   | 8,813 |   |
| Net cash provided by operating activities                |   |               | 34,435  |   |   |   | 14,913 |   |
|                                                     |   |               |    |   |   |   |   |   |
| Cash flows from investing activities:                    |   |               |    |   |   |   |   |   |
| Acquisition of property and equipment                    |   |               | (66,137 | ) |   |   | (57,127 | ) |
| Short-term investments                                   |   |               | -       |   |   |   | 19,987 |   |
| Earnest money deposit                                    |   |               | (6,250  | ) |   |   |   |   |
| Net cash used in investing activities                    |   |               | (72,387 | ) |   |   | (37,140 | ) |
|                                                     |   |               |    |   |   |   |   |   |
| Cash flows from financing activities:                    |   |               |    |   |   |   |   |   |
| Proceeds from exercise of warrants                       |   |               | 10,699  |   |   |   | 23,771 |   |
| Net proceeds from revolving credit facility              |   |               | 40,000  |   |   |   | - |   |
| Shares withheld for payment of employee payroll taxes    |   |               | (389    | ) |   |   | (34 | ) |
| Net cash provided by financing activities                |   |               | 50,310  |   |   |   | 23,737 |   |
|                                                     |   |               |    |   |   |   |   |   |
| Net increase in cash and cash equivalents                |   |               | 12,358  |   |   |   | 1,510 |   |
|                                                     |   |               |    |   |   |   |   |   |
| Cash and cash equivalents at beginning of period         |   |               | 34,753  |   |   |   | 19,463 |   |
|                                                     |   |               |    |   |   |   |   |   |
| Cash and cash equivalents at end of period               |   | $                  | 47,111  |   |   | $ | 20,973 |   |
|                                                     |   |               |    |   |   |   |   |   |
| Supplemental Cash Flow Information (See Note 14)         |   |               |    |   |   |   |   |   |

----

| 1. | Organization and Summary of Significant Accounting Policies |
|----|-------------------------------------------------------------|

----

----

|                 |   | Three Months Ended |   |
|----------------------|--------|--------------------|--------|
|                 |   | November 30,       |   |   | November 30, |   |
|                 |   | 2014               |   |   | 2013 |   |
| Capitalized Overhead |   | $                  | 503    |   |   | $ | 317 |   |

----

|            |   | Three Months Ended |   |
|-----------------|--------|--------------------|--------|
|            |   | November 30,       |   |   | November 30, |   |
| Major Customers |   | 2014               |   |   | 2013 |   |
| Company A       |   |               | 68%    |   |   |   | 60% |   |
| Company B       |   |               | 12%    |   |   |   | 15% |   |

| Major Customers |   | As ofNovember 30, 2014 |   |   | As ofNovember 30, 2013 |   |
|-----------------|--------|------------------------|--------|--------|------------------------|--------|
| Company A       |   |                   | 29%    |   |                   |   | 29% |   |
| Company B       |   |                   | (1)    |   |                   |   | 16% |   |
| Company C       |   |                   | (1)    |   |                   |   | 10% |   |

----

----

|                                          |   | Three Months Ended |       |
|-----------------------------------------------|--------|--------------------|------------|
|                                          |   | November 30,       |       |   | November 30, |   |
|                                          |   | 2014               |       |   | 2013 |   |
|                                          |   |                    |       |   |  |   |
| Weighted-average shares outstanding-basic     |   |               | 79,008,719 |   |   |   | 73,674,865 |   |
| Potentially dilutive common shares from:      |   |               |       |   |   |   |   |   |
| Stock Options                                 |   |               | 793,270    |   |   |   | 551,060 |   |
| Warrants                                      |   |               | 339,163    |   |   |   | 1,818,680 |   |
|                                          |   |               | 1,132,433  |   |   |   | 2,369,740 |   |
| Weighted-average shares outstanding - diluted |   |               | 80,141,152 |   |   |   | 76,044,605 |   |

|                   |   | Three Months Ended |    |
|------------------------|--------|--------------------|---------|
|                   |   | November 30,       |    |   | November 30, |   |
|                   |   | 2014               |    |   | 2013 |   |
|                   |   |                    |    |   |  |   |
| Employee stock options |   |               | 523,000 |   |   |   | 810,000 |   |

----

----

| 2. | Property and Equipment |
|----|------------------------|

|                                                                                                      |   | As of             |    |   | As of           |   |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|-----------------|--------|
|                                                                                                      |   | November 30, 2014 |    |   | August 31, 2014 |   |
| Oil and gas properties, full cost method:                                                                 |   |                   |    |   |                 |   |
|    Unevaluated costs, not subject to amortization:                                         |   |                   |    |   |                 |   |
|       Lease acquisition and other costs                                     |   | $                 | 61,133  |   |            | $      | 41,531 |   |
|       Wells in progress                                                     |   |              | 65,861  |   |            |   | 53,747 |   |
|          Subtotal, unevaluated costs                         |   |              | 126,994 |   |            |   | 95,278 |   |
|                                                                                                      |   |              |    |   |            |   |   |   |
|    Evaluated costs:                                                                        |   |              |    |   |            |   |   |   |
|       Producing and non-producing                                           |   |              | 366,951 |   |            |   | 329,926 |   |
|          Total capitalized costs                             |   |              | 493,945 |   |            |   | 425,204 |   |
|       Less, accumulated depletion                                           |   |              | (71,555 | )      |            |   | (54,908 | ) |
|            Oil and gas properties, net             |   |              | 422,390 |   |            |   | 370,296 |   |
|                                                                                                      |   |              |    |   |            |   |   |   |
| Land                                                                                                      |   |              | 4,478   |   |            |   | 3,898 |   |
| Other property and equipment                                                                              |   |              | 822     |   |            |   | 5,961 |   |
| Less, accumulated depreciation                                                                            |   |              | (451    | )      |            |   | (755 | ) |
|             Other property and equipment, net |   |              | 4,849   |   |            |   | 9,104 |   |
|                                                                                                      |   |              |    |   |            |   |   |   |
| Total property and equipment, net                                                                         |   | $                 | 427,239 |   |            | $      | 379,400 |   |

----

| 3. | Acquisitions |
|----|--------------|

| Purchase Price                                      |   | November 12,2013 |   |
|-----------------------------------------------------|--------|------------------|--------|
| Consideration Given                                 |   |                  |   |
| Cash                                                |   | $                | 15,902 |   |
| Synergy Resources Corp. Common Stock *              |   |             | 2,896  |   |
|                                                |   |             |   |   |
| Total consideration given                           |   | $                | 18,798 |   |
|                                                |   |             |   |   |
| Allocation of Purchase Price                        |   |             |   |   |
| Proved oil and gas properties                       |   | $                | 11,514 |   |
| Unproved oil and gas properties                     |   | $                | 7,725  |   |
| Total fair value of oil and gas properties acquired |   |             | 19,239 |   |
|                                                |   |             |   |   |
| Working capital                                     |   | $                | (83    | ) |
| Asset retirement obligation                         |   |             | (358   | ) |
|                                                |   |             |   |   |
| Fair value of net assets acquired                   |   | $                | 18,798 |   |
|                                                |   |             |   |   |
| Working capital acquired was estimated as follows:  |   |             |   |   |
| Accounts receivable                                 |   |             | 536    |   |
| Accrued liabilities and expenses                    |   |             | (619   | ) |
|                                                |   |             |   |   |
| Total working capital                               |   | $                | (83    | ) |

----

| Purchase Price                                      |   | November 13,2013 |   |
|-----------------------------------------------------|--------|------------------|--------|
| Consideration Given                                 |   |                  |   |
| Cash                                                |   | $                | 14,688 |   |
| Synergy Resources Corp. Common Stock *              |   |             | 5,432  |   |
|                                                |   |             |   |   |
| Total consideration given                           |   | $                | 20,120 |   |
|                                                |   |             |   |   |
| Allocation of Purchase Price                        |   |             |   |   |
| Proved oil and gas properties                       |   | $                | 13,284 |   |
| Unproved oil and gas properties                     |   | $                | 7,577  |   |
| Total fair value of oil and gas properties acquired |   |             | 20,861 |   |
|                                                |   |             |   |   |
| Working capital                                     |   | $                | (507   | ) |
| Asset retirement obligation                         |   |             | (234   | ) |
|                                                |   |             |   |   |
| Fair value of net assets acquired                   |   | $                | 20,120 |   |
|                                                |   |             |   |   |
| Working capital acquired was estimated as follows:  |   |             |   |   |
| Accounts receivable                                 |   |             | 662    |   |
| Accrued liabilities and expenses                    |   |             | (1,169 | ) |
|                                                |   |             |   |   |
| Total working capital                               |   | $                | (507   | ) |

----

| 4. | Depletion, depreciation and amortization (“DDA”) |
|----|--------------------------------------------------------------|

|                          |   | Three Months ended |   |
|-------------------------------|--------|--------------------|--------|
|                          |   | November 30,       |   |   | November 30, |   |
| (in thousands)                |   | 2014               |   |   | 2013 |   |
| Depletion                     |   | $                  | 16,304 |   |   | $ | 5,490 |   |
| Depreciation and amortization |   |               | 150    |   |   |   | 101 |   |
| Total DDA Expense             |   | $                  | 16,454 |   |   | $ | 5,591 |   |

| 5. | Asset Retirement Obligations |
|----|------------------------------|

|                                    |   | For the Three Months Ended November 30, |   |
|-----------------------------------------|--------|----------------------------------------------|--------|
|                                    |   | 2014                                         |   |   | 2013 |   |
| Inflation rate                          |   |                                         | 3.90%  |   |   |   | 3.9 - 4.0% |   |
| Estimated asset life                    |   | 25.0 - 39.0 years                            |   |   | 24.0 - 40.0 years |   |
| Credit adjusted risk free interest rate |   |                                         | 8.0%   |   |   |   | 8.0% |   |

----

| Asset retirement obligations, August 31, 2014   |   | $      | 4,730 |   |
|-------------------------------------------------|--------|--------|-------|--------|
|   Liabilities incurred                |   |   | 269   |   |
|   Liabilities assumed                 |   |   | -     |   |
|   Accretion expense                   |   |   | 110   |   |
| Asset retirement obligations, November 30, 2014 |   | $      | 5,109 |   |

| 6. | Revolving Credit Facility |
|----|---------------------------|

----

| 7. | Commodity Derivative Instruments |
|----|----------------------------------|

----

| Settlement Period                |        | DerivativeInstrument |   | Average Volumes(BBls/MMBtuper month) |   |   | AverageStrikePrice |   |   | FloorPrice |   |   | CeilingPrice |   |
|----------------------------------|--------|----------------------|--------|--------------------------------------|--------|--------|--------------------|--------|--------|------------|--------|--------|--------------|--------|
| Crude Oil - NYMEX WTI            |        |                 |   |                                      |   |   |                    |   |   |            |   |   |              |   |
| Dec 1, 2014 - Dec 31, 2014       |        | Collar               |   |                                 | 21,840 |   |               |   | -      |       |   | $      | 86.83        |   |   | $ | 96.44 |   |
| Dec 1, 2014 - Dec 31, 2014       |        | Swap                 |   |                                 | 56,840 |   |               | $      | 87.08  |       |   |   | -            |   |   |   | - |   |
|                             |        |                 |   |                                 |   |   |               |   |   |       |   |   |         |   |   |   |   |   |
| Jan 1, 2015 - Jun 30, 2015       |        | Collar               |   |                                 | 7,000  |   |               |   | -      |       |   | $      | 80.00        |   |   | $ | 92.50 |   |
| Jan 1, 2015 - Jun 30, 2015       |        | Collar               |   |                                 | 2,500  |   |               |   | -      |       |   | $      | 80.00        |   |   | $ | 95.75 |   |
| Jul  1, 2015 - Dec 31, 2015 |        | Collar               |   |                                 | 9,000  |   |               |   | -      |       |   | $      | 80.00        |   |   | $ | 92.25 |   |
| Jan 1, 2015 - Dec 31, 2015       |        | Collar               |   |                                 | 4,500  |   |               |   | -      |       |   | $      | 80.00        |   |   | $ | 99.40 |   |
| Jan 1, 2015 - Dec 31, 2015       |        | Collar               |   |                                 | 6,000  |   |               |   | -      |       |   | $      | 85.00        |   |   | $ | 101.30 |   |
| Jan 1, 2015 -  Jun 30, 2015 |        | Swap                 |   |                                 | 20,000 |   |               | $      | 90.10  |       |   |   | -            |   |   |   | - |   |
| Jul  1, 2015 - Dec 31, 2015 |        | Swap                 |   |                                 | 15,500 |   |               | $      | 89.52  |       |   |   | -            |   |   |   | - |   |
| Jan 1, 2015 - Oct 31, 2015       |        | Swap                 |   |                                 | 14,600 |   |               | $      | 78.65  |       |   |   | -            |   |   |   | - |   |
|                             |        |                 |   |                                 |   |   |               |   |   |       |   |   |         |   |   |   |   |   |
| Jan 1, 2016 - May 31, 2016       |        | Collar               |   |                                 | 10,000 |   |               |   | -      |       |   | $      | 75.00        |   |   | $ | 96.00 |   |
| Jan 1, 2016 - May 31, 2016       |        | Collar               |   |                                 | 5,000  |   |               |   | -      |       |   | $      | 80.00        |   |   | $ | 100.75 |   |
| Jun 1, 2016 - Aug 31, 2016       |        | Collar               |   |                                 | 15,000 |   |               |   | -      |       |   | $      | 80.00        |   |   | $ | 100.05 |   |
| Jan 1, 2016 - Aug 31, 2016       |        | Swap                 |   |                                 | 5,000  |   |               | $      | 88.55  |       |   |   | -            |   |   |   | - |   |
| Sep 1, 2016 - Dec 31, 2016       |        | Swap                 |   |                                 | 20,000 |   |               | $      | 88.10  |       |   |   | -            |   |   |   | - |   |
| Jan 1, 2016 - Oct 31, 2016       |        | Swap                 |   |                                 | 6,400  |   |               | $      | 78.96  |       |   |   | -            |   |   |   | - |   |
|                             |        |                 |   |                                 |   |   |               |   |   |       |   |   |         |   |   |   |   |   |
|                             |        |                 |   |                                 |   |   |               |   |   |       |   |   |         |   |   |   |   |   |
|                             |        |                 |   |                                 |   |   |               |   |   |       |   |   |         |   |   |   |   |   |
| Natural Gas - NYMEX Henry Hub    |   |                 |   |                                 |   |   |               |   |   |       |   |   |         |   |   |   |
| Dec 1, 2014 - Dec 31, 2014       |        | Swap                 |   |                                 | 80,000 |   |               | $      | 4.58   |       |   |   | -            |   |   |   | - |   |
| Dec 1, 2014 - Dec 31, 2014       |        | Collar               |   |                                 | 30,000 |   |               |   | -      |       |   | $      | 4.07         |   |   | $ | 4.18 |   |
| Jan 1, 2015 - Dec 31, 2015       |        | Collar               |   |                                 | 72,000 |   |               |   | -      |       |   | $      | 4.15         |   |   | $ | 4.49 |   |
| Jan 1, 2016 - May 31, 2016       |        | Collar               |   |                                 | 60,000 |   |               |   | -      |       |   | $      | 4.05         |   |   | $ | 4.54 |   |
| Jun 1, 2016 - Aug 31, 2016       |        | Collar               |   |                                 | 60,000 |   |               |   | -      |       |   | $      | 3.90         |   |   | $ | 4.14 |   |

----

|                 |  |              |   | As of November 30, 2014                            |   |
|----------------------|--|------------------------|--------|----------------------------------------------------|--------|
| Underlying Commodity |  | Balance SheetLocation  |   | Gross Amounts of Recognized Assets and Liabilities |   |   | Gross Amounts Offset in the Balance Sheet |   |   | Net Amounts of Assets and Liabilities Presented in the Balance Sheet |   |
| Derivative contracts |  | Current assets         |   | $                                                  | 12,184 |   |   | $ | (200 | ) |   | $ | 11,984 |   |
| Derivative contracts |  | Noncurrent assets      |   | $                                                  | 4,756  |   |   | $ | (222 | ) |   | $ | 4,534 |   |
| Derivative contracts |  | Current liabilities    |   | $                                                  | 200    |   |   | $ | (200 | ) |   | $ | - |   |
| Derivative contracts |  | Noncurrent liabilities |   | $                                                  | 222    |   |   | $ | (222 | ) |   | $ | - |   |

|                 |  |              |   | As of August 31, 2014                              |   |
|----------------------|--|------------------------|--------|----------------------------------------------------|--------|
| Underlying Commodity |  | Balance SheetLocation  |   | Gross Amounts of Recognized Assets and Liabilities |   |   | Gross Amounts Offset in the Balance Sheet |   |   | Net Amounts of Assets and Liabilities Presented in the Balance Sheet |   |
| Derivative contracts |  | Current assets         |   | $                                                  | 903    |   |   | $ | (538 | ) |   | $ | 365 |   |
| Derivative contracts |  | Noncurrent assets      |   | $                                                  | 718    |   |   | $ | (664 | ) |   | $ | 54 |   |
| Derivative contracts |  | Current liabilities    |   | $                                                  | 840    |   |   | $ | (538 | ) |   | $ | 302 |   |
| Derivative contracts |  | Noncurrent liabilities |   | $                                                  | 971    |   |   | $ | (664 | ) |   | $ | 307 |   |

|                                          | Three Months ended |   |
|-----------------------------------------------|--------------------|--------|
|                                          | November 30        |   | November 30 |   |
|                                          | 2014               |   | 2013 |   |
| Unrealized gain on commodity derivatives      | $                  | 16,708 |   | $ | 2,636 |   |
| Realized gain (loss) on commodity derivatives |               | 1,432  |   |   | (398 | ) |
| Total gain                                    | $                  | 18,140 |   | $ | 2,238 |   |

----

| 8. | Fair Value Measurements |
|----|-------------------------|

| · | Level 1: Quoted prices available in active markets for identical assets or liabilities; |
|--------|-----------------------------------------------------------------------------------------|

| · | Level 2: Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| · | Level 3: Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash or valuation models. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

----

|                         |   | Fair Value Measurements at November 30, 2014 |   |
|-----------------------------------|--------|----------------------------------------------|--------|
|                         |   | Level 1                                      |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Financial assets and liabilities: |   |                                              |   |   |  |   |   |  |   |   |  |   |
| Commodity derivative asset        |   | $                                            | -      |   |   | $ | 16,518 |   |   | $ | - |   |   | $ | 16,518 |   |
| Commodity derivative liability    |   | $                                            | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                              |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                         |   | Fair Value Measurements at August 31, 2014   |   |
|                         |   | Level 1                                      |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Financial assets and liabilities: |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity derivative asset        |   | $                                            | -      |   |   | $ | 419 |   |   | $ | - |   |   | $ | 419 |   |
| Commodity derivative liability    |   | $                                            | -      |   |   | $ | 609 |   |   | $ | - |   |   | $ | 609 |   |

----

| 9. | Interest Expense |
|----|------------------|

|                                |   | Three Months Ended |   |
|-------------------------------------|--------|--------------------|--------|
|                                |   | November 30,       |   |   | November 30, |   |
|                                |   | 2014               |   |   | 2013 |   |
|                                |   |                    |   |   |  |   |
| Revolving credit facility           |   | $                  | 378    |   |   | $ | 251 |   |
| Amortization of debt issuance costs |   |               | 137    |   |   |   | 94 |   |
| Less, interest capitalized          |   |               | (515   | ) |   |   | (345 | ) |
| Interest expense, net               |   | $                  | -      |   |   | $ | - |   |

| 10. | Shareholders’ Equity |
|-----|----------------------------|

|                                           |   | As of November 30, |        |   | As of August 31, |   |
|------------------------------------------------|--------|--------------------|-------------|--------|------------------|--------|
|                                           |   | 2014               |        |   | 2014             |   |
| Preferred stock, shares authorized             |   |               | 10,000,000  |   |             |   | 10,000,000 |   |
| Preferred stock, par value                     |   | $                  | 0.01        |   |             | $      | 0.01 |   |
| Preferred stock, shares issued and outstanding |   | nil                |        |   | nil              |   |
| Common stock, shares authorized                |   |               | 200,000,000 |   |             |   | 200,000,000 |   |
| Common stock, par value                        |   | $                  | 0.001       |   |             | $      | 0.001 |   |
| Common stock, shares issued and outstanding    |   |               | 79,854,500  |   |             |   | 77,999,082 |   |

| Description |   | Number of Warrants |    |   | Exercise Price |   |   | Remaining Contractual Life (in years) |   |   | Exercise Price times Number of Warrants |   |
|-------------|--------|--------------------|---------|--------|----------------|--------|--------|---------------------------------------|--------|--------|-----------------------------------------|--------|
| Series C    |   |               | 778,330 |   |           |   | $6.00  |                                  |   |   | 0.1                                     |   |   | $ | 4,669,980 |   |
| Series D    |   |               | 1,058   |   |           |   | $1.60  |                                  |   |   | 0.1                                     |   |   | $ | 1,693 |   |
|        |   |               | 779,388 |   |           |   |   |                                  |   |   |                                    |   |   | $ | 4,671,673 |   |

----

|                           |   | Number ofWarrants |       |   | Weighted-AverageExercise Price |   |
|--------------------------------|--------|-------------------|------------|--------|--------------------------------|--------|
| Outstanding, August 31, 2014   |   |              | 2,562,473  |   |                           | $      | 6.00 |   |
| Granted                        |   |              | -          |   |                           | $      | - |   |
| Exercised                      |   |              | (1,783,085 | )      |                           | $      | 6.00 |   |
| Expired                        |   |              | -          |   |                           | $      | - |   |
| Outstanding, November 30, 2014 |   |              | 779,388    |   |                           | $      | 6.00 |   |

| 11. | Stock-Based Compensation |
|-----|--------------------------|

|                  |   | Three Months ended |   |
|-----------------------|--------|--------------------|--------|
|                  |   | November 30,       |   |   | November 30, |   |
|                  |   | 2014               |   |   | 2013 |   |
| Stock options         |   | $                  | 500    |   |   | $ | 419 |   |
| Employee stock grants |   |               | 293    |   |   |   | - |   |
|                  |   | $                  | 793    |   |   | $ | 419 |   |

|                                        |   | Three Months ended |   |
|---------------------------------------------|--------|--------------------|--------|
|                                        |   | November 30,       |   |   | November 30, |   |
|                                        |   | 2014               |   |   | 2013 |   |
| Number of options to purchase common shares |   |               | 75,000 |   |   |   | 150,000 |   |
| Weighted-average exercise price             |   | $                  | 12.87  |   |   | $ | 9.98 |   |
| Term (in years)                             |   |               | 10.0   |   |   |   | 10.0 |   |
| Vesting Period (in years)                   |   |               | 5      |   |   |   | 5 |   |
| Fair Value (in thousands)                   |   | $                  | 639    |   |   | $ | 1,014 |   |

----

|                    |   | Three Months Ended |   |
|-------------------------|--------|--------------------|--------|
|                    |   | November 30,2014   |   |   | November 30,2013 |   |
| Expected term           |   | 6.5 years          |   |   | 6.5 years |   |
| Expected volatility     |   |               | 72%    |   |   |   | 74% |   |
| Risk free rate          |   |               | 1.95%  |   |   |   | 1.91% |   |
| Expected dividend yield |   |               | 0.00%  |   |   |   | 0.00% |   |
| Forfeiture rate         |   |               | 0.30%  |   |   |   | 0.00% |   |

|                           |   | Numberof Shares |      |   | Weighted-Average Exercise Price |   |
|--------------------------------|--------|-----------------|-----------|--------|--------------------------------------|--------|
| Outstanding, August 31, 2014   |   |            | 2,167,000 |   |                                 | $      | 5.94 |   |
| Granted                        |   |            | 75,000    |   |                                 | $      | 12.87 |   |
| Exercised                      |   |            | (120,000  | )      |                                 | $      | 3.76 |   |
| Forfeited                      |   |            | -         |   |                                 |   | - |   |
| Outstanding, November 30, 2014 |   |            | 2,122,000 |   |                                 | $      | 6.31 |   |

|                                             |   | Outstanding Options |      |   | VestedOptions |   |
|---------------------------------------------|--------|---------------------|-----------|--------|---------------|--------|
| Number of shares                            |   |                | 2,122,000 |   |          |   | 831,100 |   |
| Weighted-average remaining contractual life |   | 7.9 years           |      |   | 7.1 years     |   |
| Weighted-average exercise price             |   | $                   | 6.31      |   |          | $      | 4.87 |   |
| Aggregate intrinsic value (in thousands)    |   | $                   | 7,958     |   |          | $      | 4,115 |   |

|                                                  |   | Unvested Options at November 30, 2014 |   |
|--------------------------------------------------|--------|---------------------------------------|--------|
| Unrecognized compensation expense (in thousands) |   | $  5,533                    |   |
| Remaining vesting phase                          |   | 3.4 years                             |   |

----

| 12. | Related Party Transactions |
|-----|----------------------------|

|         | Three Months ended |   |
|--------------|--------------------|--------|
|         | November 30,       |   | November 30, |   |
|         | 2014               |   | 2013 |   |
| Rent expense | $             |   | 45 |   | $ | 45 |   |

|                   |   | Three Months ended |   |
|------------------------|--------|--------------------|--------|
|                   |   | November 30,       |   |   | November 30, |   |
|                   |   | 2014               |   |   | 2013 |   |
| Total Royalty Payments |   | $                  | 53     |   |   | $ | 82 |   |

----

| 13. | Other Commitments and Contingencies |
|-----|-------------------------------------|

| 14. | Supplemental Schedule of Information to the Statements of Cash Flows |
|-----|----------------------------------------------------------------------|

|                                         |   | Three Months Ended |   |
|----------------------------------------------|--------|--------------------|--------|
|                                         |   | November 30,       |   |   | November 30, |   |
|                                         |   | 2014               |   |   | 2013 |   |
| Supplemental cash flow information:          |   |                    |   |   |  |   |
|     Interest paid        |   | $                  | 321    |   |   | $ | 251 |   |
|     Income taxes paid    |   |               | 110    |   |   |   | - |   |
|                                         |   |               |   |   |   |   |   |   |
| Non-cash investing and financing activities: |   |               |   |   |   |   |   |   |
| Accrued well costs                           |   | $                  | 69,511 |   |   | $ | 26,813 |   |
| Assets acquired in exchange for common stock |   |               | -      |   |   |   | 9,898 |   |
| Asset retirement costs and obligations       |   |               | 269    |   |   |   | 692 |   |

----

| 15. | Subsequent Events |
|-----|-------------------|

| · | non-operated working interests in 17 horizontal wells (including 4 mid-reach laterals); |
|--------|-----------------------------------------------------------------------------------------|

| · | 73 operated and 11 non-operated vertical wells; |
|--------|-------------------------------------------------|

| · | 35 permit applications for operated horizontal wells (including 20 extended reach laterals); |
|--------|----------------------------------------------------------------------------------------------|

| · | 5,040 gross acres (4,053 net) with rights to the Codell and Niobrara formations; |
|--------|----------------------------------------------------------------------------------|

| · | 2,400 gross acres (1,739 net) with rights to other formations, including the Sussex, Shannon and J-Sands; |
|--------|-----------------------------------------------------------------------------------------------------------|

| · | 3-D seismic data; and |
|--------|-----------------------|

| · | miscellaneous equipment. |
|--------|--------------------------|

----

|              |   | VERTICAL WELLS |   |
|-------------------|--------|----------------|--------|
|              |        | OPERATED WELLS |        |  | NON-OPERATED WELLS |  |  |  |  |  |  |  |  |  |  |  |  |  |
|              |   | Completed      |   |   | Participated |   |   | Acquired |   |   | Total |   |
| Years ended:      |   | Gross          |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |
|              |   |                |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Prior to 2012     |   |           | 56     |   |   |   | 47 |   |   |   | 13 |   |   |   | 4 |   |   |   | 63 |   |   |   | 44 |   |   |   | 132 |   |   |   | 95 |   |
| August 31 2012    |   |           | 51     |   |   |   | 48 |   |   |   | 8 |   |   |   | 3 |   |   |   | 4 |   |   |   | 4 |   |   |   | 63 |   |   |   | 55 |   |
| August 31, 2013   |   |           | 27     |   |   |   | 26 |   |   |   | 10 |   |   |   | 4 |   |   |   | 36 |   |   |   | 34 |   |   |   | 73 |   |   |   | 64 |   |
| August 31, 2014   |   |           | 1      |   |   |   | 1 |   |   |   | 5 |   |   |   | 1 |   |   |   | 60 |   |   |   | 35 |   |   |   | 66 |   |   |   | 37 |   |
| November 30, 2014 |   |           | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|              |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total             |   |           | 135    |   |   |   | 122 |   |   |   | 36 |   |   |   | 12 |   |   |   | 163 |   |   |   | 117 |   |   |   | 334 |   |   |   | 251 |   |

----

|              |   | HORIZONTAL WELLS |   |
|-------------------|--------|------------------|--------|
|              |        | OPERATED WELLS   |        |  | NON-OPERATED WELLS |  |  |  |  |  |  |  |  |  |  |  |  |  |
|              |   | Completed        |   |   | Participated |   |   | Acquired |   |   | Total |   |
| Years ended:      |   | Gross            |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |
|              |   |                  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| August 31, 2012   |   |             | -      |   |   |   | - |   |   |   | 5 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 5 |   |   |   | 1 |   |
| August 31, 2013   |   |             | -      |   |   |   | - |   |   |   | 11 |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | 11 |   |   |   | 2 |   |
| August 31, 2014   |   |             | 31     |   |   |   | 29 |   |   |   | 23 |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | 54 |   |   |   | 31 |   |
| November 30, 2014 |   |             | 8      |   |   |   | 6 |   |   |   | 36 |   |   |   | 6 |   |   |   | - |   |   |   | - |   |   |   | 44 |   |   |   | 12 |   |
|              |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total             |   |             | 39     |   |   |   | 35 |   |   |   | 75 |   |   |   | 11 |   |   |   | - |   |   |   | - |   |   |   | 114 |   |   |   | 46 |   |

| · | were the operator of 39 horizontal wells that were producing oil and gas and we were participating as a non-operating working interest owner in 75 horizontal producing wells; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | were the operator of 269 vertical wells that were producing oil and gas and we were participating as a non-operating working interest owner in 65 producing wells; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | were the operator of 23 wells in progress and we were participating as a non-operating working interest owner in 11 wells in progress; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

| · | held approximately 446,000 gross acres and 313,000 net acres under lease. |
|--------|---------------------------------------------------------------------------|

----

----

----

|             |   | Years Ended August 31, |   |
|-----------------------|--------|------------------------|--------|
|                  |   | 2014                   |   |   | 2013 |   |   | 2012 |   |   | 2011 |   |   | 2010 |   |
| Average NYMEX prices  |   |                   |        |   |   |  |   |   |  |   |   |  |   |
| Oil (per bbl)         |   | $                      | 100.39 |   |   | $ | 94.58 |   |   | $ | 94.88 |   |   | $ | 91.79 |   |   | $ | 76.65 |   |
| Natural gas (per mcf) |   | $                      | 4.38   |   |   | $ | 3.55 |   |   | $ | 2.82 |   |   | $ | 4.12 |   |   | $ | 4.45 |   |

|                  |   | Three Months Ended |   |
|-----------------------|--------|--------------------|--------|
|                  |   | November 30,       |   |   | November 30, |   |
| Oil (NYMEX WTI)       |   | 2014               |   |   | 2013 |   |
| Average NYMEX Price   |   | $                  | 84.47  |   |   | $ | 100.23 |   |
| Realized Price        |   | $                  | 73.69  |   |   | $ | 93.06 |   |
| Differential          |   | $                  | 10.78  |   |   | $ | 7.17 |   |
|                  |   |               |   |   |   |   |   |   |
| Gas (NYMEX Henry Hub) |   |               |   |   |   |   |   |   |
| Average NYMEX Price   |   | $                  | 3.94   |   |   | $ | 3.65 |   |
| Realized Price        |   | $                  | 4.74   |   |   | $ | 4.86 |   |
| Differential          |   | $                  | 0.80   |   |   | $ | 1.21 |   |

----

----

|                |   | Three Months Ended |      |   |                   |   |
|--------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                |   | November 30, 2014  |      |   | November 30, 2013 |   |   | Change |   |
| Production:              |   |                    |      |   |                   |   |   |  |   |
| Oil (Bbls1)              |   |               | 466,656   |   |              |   | 168,278 |   |   |   | 177 | % |
| Gas (Mcf2)               |   |               | 1,719,938 |   |              |   | 741,755 |   |   |   | 132 | % |
|                     |   |               |      |   |              |   |   |   |   |   |   |   |
| Total production in BOE3 |   |               | 753,312   |   |              |   | 291,904 |   |   |   | 158 | % |
|                     |   |               |      |   |              |   |   |   |   |   |   |   |
| Revenues (in thousands): |   |               |      |   |              |   |   |   |   |
|  Oil                |   | $                  | 34,386    |   |              | $      | 15,660 |   |   |   | 120 | % |
|  Gas                |   |               | 8,152     |   |              |   | 3,606 |   |   |   | 126 | % |
|                |   | $                  | 42,538    |   |              | $      | 19,266 |   |   |   | 121 | % |
| Average sales price:     |   |               |      |   |              |   |   |   |   |   |   |   |
|  Oil                |   | $                  | 73.69     |   |              | $      | 93.06 |   |   |   | -21 | % |
|  Gas                |   | $                  | 4.74      |   |              | $      | 4.86 |   |   |   | -2 | % |
|  BOE                |   | $                  | 56.47     |   |              | $      | 66.00 |   |   |   | -14 | % |

| 1 “Bbl” refers to one stock tank barrel, or 42 U.S. gallons liquid volume in reference to crude oil or other liquid hydrocarbons.     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2 “Mcf” refers to one thousand cubic feet of natural gas.                                                                             |
| 3 “BOE” refers to barrel of oil equivalent, which combines Bbls of oil and Mcf of gas by converting each six Mcf of gas to one Bbl of oil. |

|                      |   | Three Months Ended |   |
|--------------------------------|--------|--------------------|--------|
|                      |   | November 30,       |   |   | November 30, |   |
|                           |   | 2014               |   |   | 2013 |   |
| Production Costs               |   | $                  | 3,035  |   |   | $ | 1,203 |   |
| Work-Over                      |   |               | 6      |   |   |   | 70 |   |
| Lifting cost                   |   |               | 3,041  |   |   |   | 1,273 |   |
| Severance and ad valorem taxes |   |               | 4,178  |   |   |   | 2,016 |   |
| Total LOE                      |   | $                  | 7,219  |   |   | $ | 3,289 |   |
|                           |   |               |   |   |   |   |   |   |
| Per BOE:                       |   |               |   |   |   |   |   |   |
| Production costs               |   | $                  | 4.03   |   |   | $ | 4.12 |   |
| Work-Over                      |   |               | 0.01   |   |   |   | 0.24 |   |
| Lifting cost                   |   |               | 4.04   |   |   |   | 4.36 |   |
| Severance and ad valorem taxes |   |               | 5.55   |   |   |   | 6.91 |   |
| Total LOE                      |   | $                  | 9.59   |   |   | $ | 11.27 |   |

----

|                     |   | Three Months Ended |   |
|-------------------------------|--------|--------------------|--------|
|                     |   | November 30,       |   |   | November 30, |   |
| (in thousands)                |   | 2014               |   |   | 2013 |   |
| Depletion                     |   | $                  | 16,304 |   |   | $ | 5,490 |   |
| Depreciation and amortization |   |               | 150    |   |   |   | 101 |   |
| Total DDA                     |   | $                  | 16,454 |   |   | $ | 5,591 |   |
|                          |   |               |   |   |   |   |   |   |
| DDA expense per BOE           |   | $                  | 21.84  |   |   | $ | 19.15 |   |

----

|               |   | Three Months Ended |   |
|-------------------------|--------|--------------------|--------|
|               |   | November 30,       |   |   | November 30, |   |
| (in thousands)          |   | 2014               |   |   | 2013 |   |
| G&A costs incurred  |   | $                  | 4,613  |   |   | $ | 3,485 |   |
| Capitalized costs       |   |               | (503   | ) |   |   | (317 | ) |
| Total G&A           |   | $                  | 4,110  |   |   | $ | 3,168 |   |
|                    |   |               |   |   |   |   |   |   |
| G&A Expense per BOE |   | $                  | 5.46   |   |   | $ | 10.85 |   |

----

|                                         |   | Three Months Ended |    |
|----------------------------------------------|--------|--------------------|---------|
|                                         |   | November 30,       |    |   | November 30, |   |
|                                         |   | 2014               |    |   | 2013 |   |
| Cash provided by operations                  |   | $                  | 34,435  |   |   | $ | 14,913 |   |
| Capital expenditures                         |   |               | (66,137 | ) |   |   | (57,127 | ) |
| Other investing activities                   |   |               | (6,250  | ) |   |   | 19,987 |   |
| Cash provided by equity financing activities |   |               | 10,310  |   |   |   | 23,737 |   |
| Net borrowings                               |   |               | 40,000  |   |   |   | - |   |
| Net increase in cash and cash equivalents    |   | $                  | 12,358  |   |   | $ | 1,510 |   |

----

|                                   |   | Three Months Ended |    |
|----------------------------------------|--------|--------------------|---------|
|                                   |   | November 30,       |    |   | November 30, |   |
|                                   |   | 2014               |    |   | 2013 |   |
| Cash payments for capital expenditures |   | $                  | 66,137  |   |   | $ | 57,127 |   |
| Accrued costs, beginning of period     |   |               | (71,849 | ) |   |   | (25,491 | ) |
| Accrued costs, end of period           |   |               | 69,511  |   |   |   | 26,813 |   |
| Non-cash acquisitions, common stock    |   |               | -       |   |   |   | 9,898 |   |
| Other                                  |   |               | 383     |   |   |   | 692 |   |
| All inclusive capital expenditures     |   | $                  | 64,182  |   |   | $ | 69,039 |   |

----

----

|                                     |   | Three Months Ended |    |
|------------------------------------------|--------|--------------------|---------|
|                                     |   | November 30        |    |   | November 30 |   |
| (in thousands)                           |   | 2014               |    |   | 2013 |   |
| Adjusted EBITDA:                         |   |                    |    |   |  |   |
| Net income                               |   | $                  | 21,151  |   |   | $ | 6,100 |   |
| Depletion, depreciation and amortization |   |               | 16,454  |   |   |   | 5,591 |   |
| Provision for income tax                 |   |               | 11,744  |   |   |   | 3,387 |   |
| Stock-based compensation                 |   |               | 793     |   |   |   | 419 |   |
| Commodity derivative change              |   |               | (16,708 | ) |   |   | (2,636 | ) |
| Interest income                          |   |               | -       |   |   |   | (31 | ) |
| Adjusted EBITDA                          |   | $                  | 33,434  |   |   | $ | 12,830 |   |

----

----

|   | • |   | volatility of oil and natural gas prices;                                                    |
|--------|---------|--------|----------------------------------------------------------------------------------------------|
|   | • |   | operating hazards that result in losses;                                                     |
|   | • |   | uncertainties in the estimates of proved reserves;                                           |
|   | • |   | effect of seasonal weather conditions and wildlife restrictions on our operations;           |
|   | • |   | our need to expand our oil and natural gas reserves;                                         |
|   | • |   | our ability to obtain adequate financing;                                                    |
|   | • |   | availability and capacity of gathering systems and pipelines for our production;             |
|   | • |   | effect of local and regional factors on oil and natural gas prices;                          |
|   | • |   | incurrence of ceiling test write-downs;                                                      |
|   | • |   | our inability to control operations on properties we do not operate;                         |
|   | • |   | our ability to market our production;                                                        |
|   | • |   | the strength and financial resources of our competitors;                                     |
|   | • |   | identifying future acquisitions;                                                             |
|   | • |   | uncertainty in global economic conditions;                                                   |
|   | • |   | legal and/or regulatory compliance requirements;                                             |
|   | • |   | the amount of our indebtedness and ability to maintain compliance with debt covenants;       |
|   | • |   | our need for capital;                                                                        |
|   | • |   | key executives allocating a portion of their time to other business interests; and           |
|   | • |   | effectiveness of our disclosure controls and our internal controls over financial reporting. |

----

----

|  | 10.32 | Fifth Amendment to Amended and Restated Credit Agreement dated December 15, 2014, among Synergy Resources Corporation, The Lenders From Time to Time Party Hereto, and SunTrust Bank and KeyBank National Association. * |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.33 | Purchase and Sale Agreement between Bayswater Exploration and Production, LLC, et al, as Sellers, and Synergy Resources Corporation, as Buyer, dated October 29, 2014. * |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 31.1 | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Ed Holloway. |
|--|------|------------------------------------------------------------------------------------------|

|  | 31.2 | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for William Scaff, Jr. |
|--|------|------------------------------------------------------------------------------------------------|

|  | 31.3 | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Frank L. Jennings. |
|--|------|------------------------------------------------------------------------------------------------|

|  | 32 | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Ed Holloway, William Scaff, Jr. and Frank L. Jennings. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------|

|  | 101 INS | XBRL Instance Document  * |
|--|---------|--------------------------------|

|  | 101 SCH | XBRL Schema Document * |
|--|---------|------------------------|

|  | 101 CAL | XBRL Calculation Linkbase Document * |
|--|---------|--------------------------------------|

|  | 101 DEF | XBRL Definition Linkbase Document * |
|--|---------|-------------------------------------|

|  | 101 LAB | XBRL Label Linkbase Document * |
|--|---------|--------------------------------|

|  | 101 PRE | XBRL Presentation Linkbase Document * |
|--|---------|---------------------------------------|

----

|           | SYNERGY RESOURCES CORPORATION                                |
|----------------|------------------------------------------------------------------------|
| August 3, 2015 | /s/ Ed Holloway                                                        |
|           | Ed Holloway, Co-Chief Executive Officer  (Principal Executive Officer) |

|           |                                                                         |
|----------------|------------------------------------------------------------------------------|
| August 3, 2015 | /s/ William Scaff, Jr.                                                       |
|           | William Scaff, Jr, Co-Chief Executive Officer  (Principal Executive Officer) |

| August 3, 2015 | /s/ Frank L. Jennings                                                                    |
|----------------|------------------------------------------------------------------------------------------|
|           | Frank L. Jennings, Chief Financial Officer  (Principal Financial and Accounting Officer) |