Synergy Resources Corporation Completes $18,000,000 Private Placement Offering

Denver, Colorado — Synergy Resources Corporation, a domestic oil and gas exploration and production company, today reported that it had completed an $18 million private placement offering. Net proceeds to Synergy, after placement agent commissions and other offering expenses, were approximately $16,600,000.

Synergy will utilize the proceeds to continue its 2009/2010 drilling program, a planned 35 well program in the Wattenberg Field in the D-J Basin. Synergy has drilled 12 wells and completed 9 wells of which 2 are producing in the Codell formation, 2 are producing from the J-Sand formation, 3 are waiting to be stimulated (fraced) and 5 are completed and will be placed into production this month. An additional 23 wells are permitted and ready to be drilled by Ensign United States Drilling, Inc.

The private placement was managed by GVC Capital LLC, formerly Bathgate Capital Partners LLC, a full-service investment banking firm headquartered in the Denver suburb of Greenwood Village, Colorado. The placement was over subscribed and consisted of 180 Units priced at $100,000, with each of the units in the offering consisting of one promissory note in the principal amount of $100,000 and 50,000 warrants. The notes bear interest at 8% per year, payable quarterly, and mature on December 31, 2012. At any time after May 31, 2010 the notes can be converted into shares of the Company’s common stock, at a conversion price of $1.60 per share. The notes will be secured by any oil or gas wells drilled, completed or acquired with the proceeds from the offering. Each warrant entitles the holder to purchase one share of the Company’s common stock at a price of $6.00 per share.

Synergy Chairman Ed Holloway stated that, “We are pleased with the response to our private placement offering and pleased that GVC Capital was able to exercise the $3,000,000 over-allotment option. The proceeds will provide the capital to complete the wells drilled in Synergy’s 2010 drilling program and to continue to take advantage of many of the compelling opportunities that exist in the D-J Basin.”

About Synergy Resources Corporation

Synergy Resources Corporation is a domestic oil and natural gas exploration and production company with leases covering 12,248 gross acres and 10,406 net acres in the Denver-Julesberg Basin. Currently the company has 6 producing wells in the Wattenberg Field; 4 producing in the Codell or Niobrara formations and 2 producing from the J-Sand formation. The Wattenberg field in the D-J Basin ranks as the 7th largest field in the U.S. in terms of proved gas reserves and 9th in production. Synergy has corporate offices in Platteville, Colorado and on 17th Street in downtown Denver. More company news and information is available at www.SYRGinfo.com.

About GVC Capital LLC

GVC Capital LLC (“GVC”), which changed its name from Bathgate Capital Partners LLC on January 1, 2010, is an innovative, full-service investment-banking firm headquartered in the Denver suburb of Greenwood Village, Colorado. GVC focuses primarily on providing comprehensive investment banking services to underexposed and undervalued microcap companies by fostering long term relationships with their clients. Over the past eight years, GVC has assisted emerging growth companies in raising in excess of $600 million in over 100 transactions. More information is available at www.gvccap.com.

This press release may contain forward-looking statements. 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.
http://www.marketwatch.com/story/synergy-resources-corporation-completes-18000000-private-placement-offering-2010-03-16?reflink=MW_news_stmp

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