Synergy Resources Announces a Borrowing Base of $175 Million on Its $500 Million Credit Facility
PLATTEVILLE, CO--(Marketwired - June 03, 2015) - Synergy Resources Corp. (NYSE MKT: SYRG) announced that it successfully closed on the Sixth Amendment to its $500 million credit facility led by SunTrust Bank. The regular semi-annual redetermination provides for a borrowing base of $175 million. The facility currently bears interest at 2.5%, which is based upon LIBOR or Prime Rate plus a margin, with a floor interest rate of 2.5%.
Monty Jennings, CFO of Synergy Resources, commented, "Our borrowing base reflects the 25% growth of our proved reserves to over 40mm BOE as of February 28th, 2015 when compared to our fiscal year end reserves at August 31, 2014. We appreciate receiving unanimous approval of the $175 million borrowing base from the eight banks participating in the credit facility. Available borrowings under the facility and the $183 million of cash on our balance sheet as of May 31st, 2015 provides approximately $217 million in liquidity to Synergy as we develop our Wattenberg assets with horizontal drilling and as we expand our footprint in the Greater Wattenberg Area through leasing and acquisition activities."
About Synergy Resources Corporation
Synergy Resources Corp. 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 risk 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; change in interest rates or inflation; 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.
Contact
Investor Relations Contact:
Jon Kruljac
Synergy Resources Corp.
jkruljac@syrginfo.com
Tel (303) 840-8166
Company Contact:
Rhonda Sandquist
Synergy Resources Corp.
rsandquist@syrginfo.com
Tel (970) 737-1073
