UNITED STATE
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): November 3, 2009
SYNERGY RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
Colorado None 20-2835920
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(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
20203 Highway 60
Platteville, Colorado 80651
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(Address of principal executive offices, including Zip Code)
Registrant's telephone number, including area code: (970) 737-1073
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N/A
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(Former name or former address if changed since last report)
Check appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below)
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-14(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement.
On November 3, 2009 Synergy entered into an agreement with Ensign Drilling
Company to drill, and possibly complete, four wells. The wells will be drilled
in the Wattenberg field of the Denver-Julesburg ("D-J") Basin.
The wells will be drilled to depths ranging between 7,600 and 8,500 feet,
reaching the Codell and J formations. Synergy estimates that the wells will cost
between $175,000 and $200,000 to drill. Completion costs for each well are
estimated to be $425,000. Drilling on the first well, the SRC 34-32, began on
November 3, 2009. Synergy has a 62.5% working interest (46.875% net revenue
interest) in the wells and will be the operator for all wells drilled.
The wells will be drilled on a 160 acre lease in Weld County, Colorado.
Synergy acquired a 37.5% working interest (28.125% net revenue interest) in the
lease for $60,000 from Petroleum Exploration & Management, LLC, a company
controlled by Ed Holloway and William E. Scaff, Jr., who are both officers and
directors of Synergy. Synergy's remaining 25% working interest (18.75% net
revenue interest) was acquired from an unrelated third party.
Petroleum Exploration & Management retained a 12.5% working interest
(9.375% net revenue interest) in the lease and will bear its proportional share
of the cost of drilling, and if warranted, completing and operating the wells.
The remaining working and net revenue interests in the lease are owned by third
parties not affiliated with Synergy.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: November 6, 2009.
SYNERGY RESOURCES CORPORATION
By: /s/ Ed Holloway
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Ed Holloway, President