Oil and gas specialist Synergy Resources Corporation announced that it has completed a 41.65 unit sale in a private offering. From the sale, Synergy received net proceeds of $3,700,000. The company has decided to divide the proceeds towards the following projects: commencing its 2009/2010 winter drilling program, initiating a planned well program in the Wattenberg Field in the D-J Basin, and stimulating and placing in production 7 Meyer wells and 4 Wiedeman wells.

Each of the units in the offering consists of one promissory note in the principal amount of $100,000 for 37,000 warrants. The notes bear interest at 8% per year, to mature on December 31, 2012; payments can be made quarterly. After May 31, 2010 the notes can be converted into shares of Synergy’s common stock, at an initial conversion price of $1.60 per share; the notes will be secured by any oil/gas wells drilled, completed or acquired with the proceeds from the offering. Finally, each warrant entitles the holder to purchase one share of the company’s common stock at a price of $6.00 per share.

Synergy Chairman Ed Holloway commented, “We are pleased with the response to our private placement offering. The proceeds will provide the capital to complete the wells drilled in Synergy’s fall drilling program and to continue to take advantage of many of the compelling opportunities that exist in the D-J Basin.”