Synergy Resources Announces Sale of Non-Core Undeveloped DJ-Basin Oil and Gas Leases

DENVER, July 21, 2011 /PRNewswire/ -- Synergy Resources Corporation (OTCBB: SYRG), a domestic oil and gas exploration and production company focused in the Denver-Julesburg Basin (the "DJ-Basin"), today announced that it sold certain mineral interests in 2,400 gross acres (1,355 net) in the DJ-Basin for a total purchase price of $3,386,350 to an independent oil and natural gas company.

The leases are undeveloped and are located in Weld and Morgan Counties, Colorado. Use of proceeds from the sale will be directed toward further developing the Company's core oil and liquid-rich natural gas properties in the DJ-Basin's Wattenberg Field.

William Scaff, Vice President of Synergy said, "As a relatively small DJ-Basin player, we are continuing to seek new ways to maintain our strategic assets, expand our drilling program and maintain a strong balance sheet.  The sale of select undeveloped acreage in Weld and Morgan Counties accomplishes these objectives.  We divested a very small portion of our acreage position for proceeds of $3,386,350 and retained an overriding royalty interest on these properties. At the same time, we continue our disciplined approach towards the growth of the company."

About Synergy Resources Corporation

Synergy Resources Corporation 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 DJ Basin ranks as the 7th largest field in the U.S. in terms of proved gas reserves and 9th in production. Synergy's corporate offices are located in Platteville, Colorado.  More company news and information is available at www.SYRGinfo.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.

SOURCE Synergy Resources Corporation

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