Synergy Resources Corp. (NYSE: SYRG) announced Dec. 12 that its credit facility led by Community Banks of Colorado has been approved for an increase to $300 million and the borrowing base to $90 million.
Synergy has $37 million borrowed on the facility as of Nov. 30 with a current interest rate of 2.67%.
"We are pleased with the increase in the credit facility and our borrowing base which reflects the growth in the PV10 value of our proved reserves to over $236 million as of August 31, 2013. We value the relationship we have developed with Community Banks of Colorado, and the other participants, Amegy Bank, Colorado Business Bank and Texas Capital Bank, in the facility. We also welcome the newest members of the syndicate KeyBanc and SunTrust Banks Inc.," Monty Jennings, chief financial officer, said in the release.
"This credit facility provides meaningful liquidity to Synergy as we continue to develop and expand our Greater Wattenberg Area asset base," Ed Holloway, president and CEO, said in the release.
Synergy Resources Corp. is an independent energy company engaged in the acquisition, exploitation, exploration, development, and production of oil and natural gas properties primarily located in northeast Colorado. The company is based in Platteville, Colo.