DENVER, April 4, 2011 /PRNewswire/ -- Synergy Resources Corporation (OTCBB: SYRG), a domestic oil and gas exploration and production company focused in the Denver-Julesburg Basin, announced today that it has received Notice of Conversions for the remainder of its outstanding Convertible Promissory Notes (the “Notes”). The Company received gross proceeds of $18 million when the Notes were originally issued between December 2009 and March 2010. The Notes carried interest of 8% per year payable quarterly, had a maturity of December 31, 2012, and were converted into 11,250,000 shares of common stock at the conversion price of $1.60 per share.
Frank Jennings, CFO of Synergy, stated, “The conversion of $18 million of Convertible Promissory Notes is a great vote of confidence for the Company. The conversion removes the debt and strengthens our balance sheet by eliminating the non-cash derivative liability. We are enthusiastic that the Note holders have elected to convert to equity and acknowledge the strength and opportunity of our business plan.”
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 continues to increase its acreage position in the Denver – Julesburg Basin with 113,681 gross acres and 98,667 net acres under lease. 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.
SOURCE Synergy Resources Corporation