Synergy Resources has signed an agreement to sell 2,570 net acres to an independent oil and gas exploration and production company for a total price of $5,654,439, or roughly $2,200 per net acre.
The leases are undeveloped and are located in Weld and Morgan Counties in Colorado.
The company received a down payment of $565,439.00 on 14 January, which will be applied at closing toward the final purchase price.
The closing of the transaction is subject to a review of the title of the leases and is scheduled for March 31, 2011.
Synergy Resources vice president William Scaff said that the negotiated price is substantially above the company’s cost for the acreage and will provide Synergy with an approximate five $5.5m without taking on additional dilution for the shareholders.
"After the transaction is closed, we will still own over 3,000 net acres in the upper Northern Weld County area," Scaff said.
"We look forward to putting the proceeds to use by drilling and completing wells in our core area of the Wattenberg Field where we will still have over 11,000+ net acres after the transaction closes."