Synergy Resources Signs JV Accord To Develop Colorado Oil And Gas; Shares Flat, At Higher End of Yr Range


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Synergy Resources Corporation ( SYRG ) said it has entered a joint venture accord with Vecta Oil & Gas to develop oil and gas leases in Morgan & Weld counties in Colorado.

Under the accord, the companies will each contribute acreage to the venture, which will be split into two separate areas. Synergy will have a 35% interest in the first area and a 65% interest in the second.

Synergy agreed to pay a leasehold reimbursement fee consisting of $2,8 million in cash and will issue 100,000 restricted common shares to Vecta, worth about $640,000. That works out at about $6.40 a share.

Synergy stock was flat in mid-afternoon trading at $6.63, though is still in the top of its 52-week range of $2.40 to $7.00.

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This article appears in: Investing , Commodities

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