PLATTEVILLE, Colo., Feb. 23, 2012 /PRNewswire/ -- Synergy Resources Corporation (NYSE Amex: SYRG), a domestic oil and gas exploration and production company focused in the Denver-Julesburg Basin (the "D-J Basin"), today announced that it has entered into an agreement to acquire mineral lease interests in approximately 8,700 undeveloped acres in the D-J Basin.
The agreement with DeClar Oil & Gas, Inc. ("DeClar") and Wolf Point Exploration, LLC, (" Wolf Point") covers acreage that is located in Weld, Morgan and Larimer Counties, Colorado. Under terms of the agreement, Synergy Resources is required to drill a minimum of two wells over the next two years. The transaction is expected to close on March 15, 2012, subject to due diligence and customary closing adjustments.
Ed Holloway, President of Synergy Resources, said "Today's agreement covers an exciting portfolio of leases assembled by DeClar and Wolf Point. The properties meet our parameters for well control and take-away capacity and further strengthens our position in the heart of the horizontal play now developing in Weld, Morgan and Larimer Counties. Our position now covers more than 22,500 total acres in the three counties. In addition, we believe that the DeClar and Wolf Point properties have the potential for production from multiple pay zones, including the Niobrara, Greenhorn, J-Sand and D-Sand formations."
Holloway continued, "Combined with our organic growth, this agreement provides the right blend of both vertical and horizontal drilling opportunities for Synergy Resources. We will continue to explore additional acquisitions on an opportunistic basis as we pursue our strategy of maximizing production from lower-risk prospects in the D-J Basin."About Synergy Resources Corporation Synergy Resources Corporation is a 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's corporate offices are located in Platteville, Colorado. 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.