DENVER--(BUSINESS WIRE)--Synergy Resources Corporation (OTCBB:SYRG), a domestic oil and gas exploration and production company, announced today that it has entered into an agreement to sell 2,570 net acres to an independent oil and gas exploration and production company. The total purchase price for the acreage is $5,654,439.00, or roughly $2,200 per net acre. The leases are undeveloped and are located in Weld and Morgan Counties in Colorado.
The Company received a down payment of $565,439.00 on January 14, which will be applied at closing toward the final purchase price. The closing of the transaction is subject to a review of the title of the leases and is scheduled for March 31, 2011.
William Scaff, Vice President of Synergy stated, “The sale of these leases reflects the excitement surrounding the DJ Basin. The negotiated price is substantially above our cost for the acreage and will provide Synergy with an approximate five and a half million dollars without taking on additional dilution for our shareholders. After the transaction is closed, we will still own over 3,000 net acres in the upper Northern Weld County area. We look forward to putting the proceeds to use by drilling and completing wells in our core area of the Wattenberg Field where we will still have over 11,000+ net acres after the transaction closes.”
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 the 7th largest field in the U.S. in terms of proved gas reserves and 9th in production. Synergy’s current acreage position in the Denver – Julesburg Basin is 21,578 gross acres and 13,633 net acres under lease. Synergy’s corporate offices are located in Platteville, Colorado. More company news and information is available at www.SYRGinfo.com.
This press release may contain forward-looking statements. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.