Synergy Resources Corporation has entered into a Purchase and Sale Agreement with a private oil company for assets in the Wattenberg Field that include 21 producing oil and gas wells and leases covering 800 net acres.

The purchase price for the assets will be $20.5 million, comprised of $17.8 million cash and $2.7 million in Synergy's common stock. The Agreement will have an effective date of July 1, 2013. Closing is subject to the completion of due diligence and the satisfaction of all conditions.

The 21 producing vertical wells collectively produce approximately 300 BOE per day net to Synergy's interest. Eight of these wells were brought into production during July, 2013. Synergy will be the operator and will receive a 100% working interest and 75% net revenue interest in these wells.

Tags: Synergy Resources Corporation