PLATTEVILLE, CO--(Marketwired - September 17, 2013) - On September 16 2013, Synergy Resources Corporation (NYSE MKT: SYRG) (Synergy), a U.S. oil and gas exploration and production company with operations focused in the D-J Basin, entered into a Purchase and Sale Agreement with a private oil company for assets in the Wattenberg Field that include 21 producing oil and gas wells and leases covering 800 net acres.
The purchase price for the assets will be $20.5 million, comprised of $17.8 million cash and $2.7 million in Synergy's common stock. The Agreement will have an effective date of July 1, 2013. Closing is subject to the completion of due diligence and the satisfaction of all conditions.
The 21 producing vertical wells collectively produce approximately 300 BOE per day net to Synergy's interest. Eight of these wells were brought into production during July, 2013. Synergy will be the operator and will receive a 100% working interest and 75% net revenue interest in these wells.
William Scaff, Executive Vice President, of Synergy commented, "We are pleased to demonstrate the continued execution of our fiscal 2014 budget focused in the Wattenberg Field. This acquisition, and the assets we agreed to purchase in August, fit extremely well into our existing acreage position in the Wattenberg Field. The cash used in these acquisitions is part of the planned use of proceeds from our recent equity offering which closed on June 19th of this year. Our further concentration in the oily section of the Wattenberg Field will enable us to develop our assets efficiently and adds to our horizontal drilling inventory."
About Synergy Resources Corporation
Synergy is a Colorado-based independent exploration and production company focused primarily on the development of its assets in the Wattenberg Field in the Denver-Julesburg Basin ("D-J Basin") in Weld County, Colorado. In addition to the Company's Wattenberg Field acreage position, it has also assembled a large leasehold position directly to the northeast of the Wattenberg Field (the "Northern Extension Area"), which Synergy believes to be prospective for the Niobrara and Greenhorn formations.
This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this press release regarding our financial position, business strategy, plans and objectives of management for future operations and industry conditions, are forward-looking statements. When used in this press release, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond the Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: general economic or industry conditions, nationally and/or in the communities in which Synergy conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, the ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, as well as other economic, competitive, governmental, regulatory and technical factors affecting the Company's operations.
These forward-looking statements are based on current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Synergy's control.