Synergy Resources, an oil and gas exploration and production company, has acquired oil and gas properties from Petroleum Management and Petroleum Exploration and Management (collectively PEM) for $1.01m in the Wattenberg field, US.
The properties consist of six producing oil and gas wells, two shut in oil wells, 15 drill sites and miscellaneous equipment.
In 2009, PEM acquired the same oil and gas properties from an unrelated third party for $920,000.
The difference in the price paid by Synergy for the properties and the price PEM paid for the properties represents interest on the amount paid by PEM for the properties, closing costs and equipment improvements.
Synergy CEO Ed Holloway said that the original seller of the properties wanted to sell the assets before Synergy had the capital to acquire the properties.
"PEM acquired the properties with the intention of selling Synergy the properties at our cost at such time that Synergy had the wherewithal to do so. These wells are in the heart of the Wattenberg field and we are thrilled they are now a part of our portfolio," Holloway said.