Synergy Resources Continues Expansion in Wattenberg Field With Additional Asset
PLATTEVILLE, CO -- (Marketwired) -- 11/14/13 -- 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, on November 13, 2013, purchased an interest in 38 wells and
approximately 900 net acres in the Wattenberg Field from a privately
held oil and gas company. Synergy will be the operator of these
wells. Additional assets that were acquired include an interest in 9
non-operated wells, a 25% interest in a Class II disposal well and
100 net acres in the Northern Extension Area of the Wattenberg Field.
Estimated average production of the acquired wells was approximately
200 BOE/D as of August 1, 2013. Synergy paid $17 million, 75% in cash
and 25% in common stock, for the assets. The purchase was made with
an effective date of August 1, 2013.
Ed Holloway, President and CEO of Synergy, stated, "The closing of
this asset purchase brings our total acreage position in the Greater
Wattenberg Area to over 24,000 net acres. The costs of this asset
purchase and the purchase of assets we announced yesterday are within
the capital expenditure budget for fiscal 2014 which we updated in
our recent earnings press release. We remain focused on increasing
our position and developing our assets in the Wattenberg through
continued drilling, asset purchases and leasing activities."
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 20,000 net acre lease hold
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, and 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 such forward-looking
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, 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.
Investor Relations Contact:
Synergy Resources Corporation
Tel (303) 840-8166
Synergy Resources Corporation
Tel (970) 737-1073
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