Synergy Resources Corporation Announces New Credit Facility

DENVER, June 13, 2011 /PRNewswire/ -- Synergy Resources Corporation (OTCBB: SYRG), a domestic oil and gas exploration and production company focused in the Denver-Julesburg Basin, today announced that it has entered into a $7 million senior secured revolving line of credit (the "credit facility") with Bank of Choice based in Greeley, Colorado.  The maturity date of the credit facility is June 03, 2012.

Loans made under this credit facility are secured by certain assets of Synergy, including wells drilled under the 2010 and 2011 drilling programs.

The credit facility's purpose is to provide funds to finance the development of oil and gas assets, to finance acquisitions of oil and gas properties, to provide working capital, and for other general corporate purposes.

Interest on borrowings under the credit facility accrues at the Wall Street Journal Prime Rate plus 2% with a floor of 5.5%.  Interest payments are due monthly with principal due at maturity.  

Synergy's Chief Financial Officer Frank Jennings stated, "We are pleased to announce our new credit facility with Bank of Choice as it is a noteworthy milestone in Synergy's progress.  The availability of funding from the facility provide Synergy with financial flexibility to appropriately leverage our operations and to aggressively pursue our 2011 drilling and completion program."      

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 D-J Basin ranks as the 7th largest field in the U.S. in terms of proved gas reserves and 9th in production.  Synergy continues to increase its acreage position in the Denver – Julesburg Basin with approximately 141,000 gross acres (122,000 net acres) under lease.  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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