Synergy Resources Corporation (NYSE MKT: SYRG) (“Synergy”) has agreed to purchase the remaining 35% working interest in the DJ Basin Greenhorn (AMI) owned by its non-operating partner, Foreland Investments LP. The transaction is scheduled to close on May 28th, subject to customary closing conditions. This acquisition gives Synergy a 100% working interest in the AMI and increases its acreage position in the AMI by 15,789 net acres. Upon closing Synergy will have approximately 93,000 net acres in the Greater Wattenberg, including 36,643 net acres in the Core Wattenberg and over 56,000 net acres in the NE Wattenberg Extension Area. The purchase price of the conveyed interests is $250 per net acre, payable in 323,745 restricted shares of Synergy’s common stock, equating to approximately $3.95 million based on $12.19 price per share. William Scaff Jr., co-CEO, of Synergy commented, “Over the past twelve months we have been pursuing a higher working interest percentage in all of our operated assets both in the core of the Wattenberg Field and in the Extension Area. This acquisition in the AMI is consistent with that objective. We are pleased that our non-operating partner has chosen to receive payment in the form of restricted shares of our common stock, which we view as a vote of confidence in the Greenhorn prospect as they will be an equity partner going forward. We are preparing to spud the first well targeting the Greenhorn formation, the Conrad 44-1GHZ well. Ensign Rig #131 is on location and is currently rigging up.”
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.
