DENVER–(BUSINESS WIRE)- December 31, 2009 -
Synergy Resources Corporation (OTCBB: SYRG), a development stage oil and gas exploration and production company, today announced that it had completed the sale of 41.65 units in a private offering. Synergy received net proceeds of $3,700,000 from the sale of the units. Synergy will utilize a portion of the proceeds to commence its 2009/2010 winter drilling program, a planned 24 well program in the Wattenberg Field in the D-J Basin, as well as to stimulate and place in production 7 Meyer wells and 4 Wiedeman wells.
Each of the units in the offering consists of one promissory note in the principal amount of $100,000 and 37,000 warrants. The notes bear interest at 8% per year, payable quarterly, and mature on December 31, 2012. At any time after May 31, 2010 the notes can be converted into shares of the Company’s common stock, initially at a conversion price of $1.60 per share. The notes will be secured by any oil or gas wells drilled, completed or acquired with the proceeds from the offering. Each warrant entitles the holder to purchase one share of the Company’s common stock at a price of $6.00 per share.
Synergy Chairman Ed Holloway stated that, “We are pleased with the response to our private placement offering. The proceeds will provide the capital to complete the wells drilled in Synergy’s fall drilling program and to continue to take advantage of many of the compelling opportunities that exist in the D-J Basin.”
About Synergy Resources Corporation
Synergy Resources Corporation is a development stage 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 has corporate offices in Platteville, Colorado and on 17th Street in downtown Denver. 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.
Contact:
Investor Relations
Andrew Barwicki
(516) 662-9461 / andrew@barwicki.com