Synergy Resources To Beef Up DJ Basin Holdings

Acquired 8,700 undeveloped acres in Weld, Morgan and Larimer cos., CO.

Synergy Resources Corp., Platteville, Colo., (NYSE Amex: SYRG) has closed its purchase of mineral lease interests in the Colorado D-J Basin from Fort Morgan, Colo.-based DeClar Oil & Gas Inc. and Fort Collins, Colo.-based Wolf Point Exploration LLC for $2.66 million.

The deal values the land at $300 per acre, according to Synergy. Synergy paid $2.2 million in cash and issued 155,770 shares.

The deal includes approximately 17,000 gross undeveloped acres (8,875 net) in Weld, Morgan and Larimer counties. The properties have the potential for production from multiple pay zones, including the Niobrara, Greenhorn, J-Sand and D-Sand formations. This area is especially prospective for the horizontal Greenhorn and Niobrara zones which will be the company's focus. Synergy Resources is required to drill a minimum of two wells during the next two years.

Synergy vice president and treasurer William Scaff says, “Our acquisition of the DeClar and Wolf Point properties provides us with additional drilling opportunities and strong visible growth as we continue to execute on our 2012 and 2013 drilling program. The added acreage and drilling inventory of both vertical and horizontal drilling opportunities in this area acts as a strong complement to our existing position of successfully drilled wells in the greater Wattenberg Field."