Synergy Resources is a domestic oil and natural gas exploration and production company. Its focus currently is on the Denver-Julesberg Basin, which encompasses areas in the states of Colorado, Wyoming, Nebraska, and Kansas. The Watterberg Field in the Basin ranks as one of the most productive fields in the United States.
The company reported today that it has amended its revolving line of credit agreement with an expanded syndicate group comprised of Community Banks of Colorado, Colorado Business Bank, and Amegy Bank National. Synergy’s long-term debt totaled roughly $3 million at fiscal year-end on August 31, 2012.
The amended terms of the agreement includes an increase to $47 million in the borrowing base versus $30 million under the prior agreement. The maximum amount of borrowing power available to Synergy under the new agreement is $150 million. This amount is subject to certain borrowing base collateral requirements, which will be reviewed by the syndicate banks every six months. The maximum interest rate on the line of credit is LIBOR plus 3.25%. The term of the line of credit has been extended to mature in November 2016.
Synergy Resources anticipates using this expanded credit line to complete the acquisition of Orr Energy, which was announced on October 23, 2012. This transaction is expected to close in early December. The company will also tap the credit line to fund part of its fiscal 2013 capital expenditure budget.
For further information about Synergy Resources and its exploration projects, visit www.syrginfo.com
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