Synergy Resources Corporation has signed an agreement to purchase interests in producing wells and leasehold in the Wattenberg Field from K.P. Kauffman Company, Inc.
The assets include leasehold rights for 4,300 net acres in the Wattenberg Field and non-operated working interests in 25 gross (approximately 5 net) horizontal wells in the Niobrara and Codell formations.
Current net production associated with the purchased assets is approximately 1,200 barrels of oil equivalent per day (BOED). The purchase price of the assets is $78 million, comprised of $35 million in cash and approximately 4.4 million shares of Synergy common stock, subject to closing adjustments. The transaction has an effective date of September 1, 2015 and is expected to close on or before October 30, 2015.