Synergy Resources finalizing Orr buyout

PLATTEVILLE – Synergy Resources Corp. plans to wrap up its purchase of Orr Energy LLC in early December, after putting together an expanded $47 million line of credit from local banks, the company said Friday.

Platteville-based oil and gas exploration and production company Synergy can borrow up to $150 million under terms of a new agreement with Denver-based Community Banks of Colorado and Colorado Business Bank and Houston-based Amegy Bank National Association, the company said in a press statement.

Synergy plans to use the money to buy Orr Energy in Greeley, and to fund part of its 2013 capital budget, the company said. Synergy plans to pay $42 million – $30 million in cash and $12 million in stock – for Orr Energy.

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Orr Energy has 36 wells producing oil and gas in the Wattenberg Field of the Denver-Julesburg Basin, which spans across Colorado, Wyoming, Kansas and Nebraska.

Synergy is expected to operate 35 of the 36 wells, according to the press statement. The Wattenberg is seen as one of the most productive oil and gas fields in the United States.