Synergy Resources Corp. reported that shareholders approved by an overwhelming margin the company’s purchase of oil and gas assets located in the western United States.

Synergy Resources is purchasing interests in 87 producing oil and gas wells located on 6,968 gross acres of leasehold in the Denver Julesburg Basin. On a net basis, the company is acquiring 40 net wells and 4,554 net acres. The company said that 99.18% of shareholders approved the transaction.

Synergy Resources will pay $19 million for the properties including $10 million in cash and $3.8 million of restricted stock. The company will also issue a $5.2 million promissory note.

Synergy Resources said that the acquired properties have 2.6 million barrels of oil equivalent of proved reserves using current market prices. These reserves are composed of 1.1 million barrels of oil and 9.4 billion cubic feet of natural gas. The company said that the proved reserves have a PV-10 value of $25.6 million.

The seller of the assets is Petroleum Exploration and Management, an oil and gas company owned by two board members of Synergy Resources Corporation. Due to this relationship, a majority of the company’s other directors must approve the transaction.

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