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SYRG > SEC Filings for SYRG > Form 8-K on 24-Oct-2012All Recent SEC Filings

Show all filings for SYNERGY RESOURCES CORP



Entry into a Material Definitive Agreement, Financial Statements and Exhib

Item 1.01 Entry into a Material Definitive Agreement

Amendment to Line of Credit

On October 18, 2012, Synergy Resources Corporation ("Synergy") entered into an amendment to its revolving line of credit agreement with Community Banks of Colorado, successor in interest to Bank of Choice. The amended terms include an increase from $20,000,000 to $30,000,000 in the maximum amount of borrowings available to Synergy, subject to certain collateral requirements. Other terms of the agreement, including interest on borrowed amounts and the commitment expiration date of November 30, 2014, were not materially changed.

As of October 18, 2012 approximately $3,000,000 million had been borrowed under the line of credit. Loan proceeds have been used, and proceeds from any future borrowings are expected to be used, primarily to repay prior indebtedness and to fund lease acquisitions and drilling and completion costs.

For additional information concerning the terms of the original line of credit dated November 30, 2011, see Synergy's Form 8-K report filed on December 1, 2011.

Agreement to acquire Oil and Gas Properties.

On October 23, 2012 Synergy entered into an agreement with an Orr Energy, LLC to acquire oil and gas properties consisting of:

o 36 producing oil and gas wells,

o leases covering approximately 3,933 gross (3,196 net) acres, and

o miscellaneous equipment.

If the acquisition is completed, Synergy will have:

o a 100% working interest (77% net revenue interest) in 29 of the producing wells, with a smaller working/net revenue interest in the remaining 7 wells, and

o working interests ranging from 100% to 10.3% (net revenue interests ranging from 80% to 8.24%) in any wells which it elects to drill and complete on the acquired leases.

The oil and gas properties are located in the Wattenberg field, which is part of the Denver-Julesburg Basin.

The purchase price for the oil and gas properties, subject to ordinary closing adjustments, is $42,000,000, payable in cash of $30,000,000 and $12,000,000 in restricted shares of Synergy's common stock.

The closing of the acquisition is subject to the completion of title reviews by Synergy and other conditions which are normal for a transaction of this nature.

Item 9.01 Financial Statements and Exhibits

Exhibit 10.16 - Amendment # 2 to Loan Agreement (to be filed by amendmend)

Exhibit 10.17 - Purchase and Sale Agreement (Weld County, Colorado oil and gas properties) (to be filed by amendmend)

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