Friday, December 2, 2011

Synergy Resources Corp. (SYRG) Secures $15 Million Line of Credit

Synergy Resources Corp. is a domestic oil and natural gas exploration and production company. The company core area of operations is in the Denver-Julesberg Basin, which encompasses Colorado, Wyoming, Kansas and Nebraska. The Wattenberg field in the Basin is the 7th largest field in the U.S. as far as proved gas reserves and 9th in production.

The company today announced it has increased its $7 million revolving line of credit to a $15 million revolving line of credit from the Bank of Choice. The new borrowing arrangement has a maturity date of November 30, 2014, with all outstanding principal due at maturity. It will have interest at the Prime Rate, subject to a floor of 3.25%. This is an improvement of a full 2% over the prior line of credit.

Approximately $5,342,000 from the line of credit was used to repay Synergy’s loan to Petroleum Exploration and Management LLC, which was required by the terms of the bank note. The remaining proceeds from the line of credit will be invested primarily in Synergy’s development drilling program in the Wattenberg Field, which presently has more than 400 potential drilling locations.

Since October 17th, when the company reported the drilling of 14 wells with a 100% success rate, it has drilled an additional four wells and is on schedule to finish drilling all of the 21 wells in the initial phase of its 2012 drilling program.

For further information about Synergy Resources, please visit its website at www.SYRGinfo.com

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