Synergy Resources buys 21 oil wells and leases

PLATTEVILLE – Synergy Resources Corp. (NYSE: SYRG) is buying 21 producing oil and gas wells and leases in the Wattenberg field in Northern Colorado for $20.5 million.

Platteville-based Synergy Resources will pay an undisclosed company $17.8 million in cash and $2.7 million in common stock for the assets. The agreement took effect July 1 and is expected to close before the end of the year.

The 21 producing vertical wells collectively produce approximately 300 barrels of oil equivalent per day for Synergy. Eight of these wells were brought into production in July. Synergy will be the operator and will receive a 100 percent working interest and 75 percent net revenue interest in these wells.

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“The cash used in these acquisitions is part of the planned use of proceeds from our recent equity offering which closed on June 19of this year,´ said William Scaff, Synergy Resources executive vice president said.

Synergy Resources said it raised $78.3 million after selling 11.5 million shares of common stock.

The deal comes on the heels of an August announcement by Synergy Resources of another agreement to pay an undisclosed company $17.5 million for a portion of 47 wells in the Wattenberg.