Synergy Resources Expands Line of Credit to $47 Million
PLATTEVILLE, Colo., Nov. 30, 2012 /PRNewswire/ -- Synergy Resources Corporation (NYSE Mkt: SYRG), a U.S. oil and gas exploration and production company focused on the Denver-Julesburg (D-J) Basin, has amended its revolving line of credit agreement with an expanded syndicate group comprised of Community Banks of Colorado, Colorado Business Bank, and Amegy Bank National.
The amended terms include an increase to $47 million in the borrowing base as compared to $30 million under the prior agreement. The maximum amount of borrowings available to Synergy under the new agreement is $150 million. The maximum amount is subject to certain borrowing base collateral requirements, which will be reviewed by the syndicate group every six months upon issuance of updated reserve reports. The maximum interest rate on the line of credit is LIBOR plus 3.25%. The term of the line of credit has been extended to mature in November 2016. The company's long term debt totaled approximately $3 million at fiscal year-end August 31, 2012.
The company anticipates using the expanded credit line to complete the acquisition of Orr Energy announced on October 23, 2012, and fund a portion of its fiscal 2013 CAPEX budget. The company currently expects to complete the Orr Energy transaction by early December, which is subject to usual closing adjustments and conditions.
For additional information about the credit line, see the company's Form 8-K to be filed with the Securities and Exchange Commission.
For more information about Synergy Resources Corp., contact Justin Vaicek at Liolios Group at 949-574-3860 or email SYRG@liolios.com.
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 one of the most productive fields in the U.S. The company's corporate offices are located in Platteville, Colorado. More company news and information about Synergy Resources is available at www.SYRGinfo.com.
Important Cautions Regarding Forward Looking Statements
This press release may contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "should," "likely" or similar expressions, indicates a forward-looking statement. These statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, and information currently available to management. 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. The identification in this press release of factors that may affect the company's future performance and the accuracy of forward-looking statements is meant to be illustrative and by no means exhaustive. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Factors that could cause the company's actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: the success of the company's exploration and development efforts; the price of oil and gas; the worldwide economic situation; changes in interest rates or inflation; the ability of the Company to transport gas; willingness and ability of third parties to honor their contractual commitments; the company's ability to raise additional capital, as it may be affected by current conditions in the stock market and competition in the oil and gas industry for risk capital; the company's capital costs, which may be affected by delays or cost overruns; costs of production; environmental and other regulations, as the same presently exist or may later be amended; the company's ability to identify, finance and integrate any future acquisitions; and the volatility of the company's stock price.
SOURCE Synergy Resources Corporation