Synergy Resources to Purchase Assets in Wattenberg Field for $17.5M in Cash, Stock Deal
On August 27, 2013 Synergy Resources Corporation (NYSE: 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 (Agreement) with an unnamed private party (Seller). Under the Agreement, Synergy will purchase 38 wells with a 27.5% working interest and 22% net revenue interest in 3,639 gross acres, 1,006 net acres of which 902 acres are located in the core of the Wattenberg Field. Synergy will be the operator of these wells. Other assets being acquired under the Agreement include interest in 9 non-operated wells and a 25% interest in a Class II disposal well. Estimated average production of the acquired wells is approximately 200 BOE/D as of July 31, 2013. Under the Agreement Synergy will pay Seller $17.5 million, 75% in cash and 25% in common stock. The Agreement has an effective date of August 1, 2013 and is expected to close during the fourth calendar quarter. Closing is subject to the completion of due diligence and the satisfaction of other conditions that are customary for transactions of this nature.
Ed Holloway, President and CEO, of Synergy, stated, "We are pleased to announce the purchase of these assets in the Wattenberg Field which complement our current acreage position in the oilier portions of the field. We are focused on increasing our position and ramping up production in the Wattenberg which we believe offers some of the best returns on capital in North America."
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