Synergy Resources Corporation (NYSE MKT: SYRG) announced that it successfully closed on the Sixth Amendment to its $500 million credit facility led by SunTrust Bank. The regular semi-annual redetermination provides for a borrowing base of $175 million. The facility currently bears interest at 2.5%, which is based upon LIBOR or Prime Rate plus a margin, with a floor interest rate of 2.5%.
Monty Jennings, CFO of Synergy Resources, commented, “Our borrowing base reflects the 25% growth of our proved reserves to over 40mm BOE as of February 28th, 2015 when compared to our fiscal year end reserves at August 31, 2014. We appreciate receiving unanimous approval of the $175 million borrowing base from the eight banks participating in the credit facility. Available borrowings under the facility and the $183 million of cash on our balance sheet as of May 31st, 2015 provides approximately $217 million in liquidity to Synergy as we develop our Wattenberg assets with horizontal drilling and as we expand our footprint in the Greater Wattenberg Area through leasing and acquisition activities.”
About Synergy Resources Corporation
Synergy Resources Corporation is a domestic oil and natural gas exploration and production company. Synergy’s core area of operations is in the Denver-Julesburg Basin, which encompasses Colorado, Wyoming, Kansas, and Nebraska. The Wattenberg field in the D-J Basin ranks as one of the most productive fields in the U.S. The company’s corporate offices are located in Platteville, Colorado. More company news and information about Synergy Resources is available at www.syrginfo.com.