Synergy Resources Corporation Announces Pricing of Upsized Public Offering of Common Stock

Synergy Resources Corporation (NYSE MKT: SYRG) ("Synergy" or the "Company") announced today that it has priced an upsized underwritten public offering of 11,500,000 shares of the Company's common stock at $6.25 per share. The Company has granted the underwriters a 30-day option to purchase up to an additional 1,725,000 shares of common stock. The Company intends to use the net proceeds from this offering, along with cash on hand, to fund a portion of its 18-month drilling and development budget and additional leasehold acquisition in the Wattenberg Field. Any remaining net proceeds will be used for corporate purposes, including working capital. The offering is expected to settle on June 19, 2013 subject to the satisfaction of customary closing conditions.

In connection with the common stock offering, Johnson Rice & Company L.L.C. is acting as sole book-running manager; Wunderlich Securities, C.K. Cooper & Company, Global Hunter Securities and Northland Capital Markets are acting as senior co-managers; and Brean Capital and GVC Capital LLC are acting as co-managers. 

The public offering is being made only by means of a prospectus supplement, free writing prospectus and accompanying base prospectus, which will be filed with the Securities and Exchange Commission. Once filed, copies of the prospectus supplement and accompanying base prospectus may be obtained from Johnson Rice & Company L.L.C., Corporate Finance Department, 639 Loyola Avenue, Suite 2775, New Orleans, LA 70113, phone (504) 584-1231. 

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. The offering is being made pursuant to an effective registration statement on Form S-3 previously filed by the Company with the Securities and Exchange Commission.

ABOUT SYNERGY RESOURCES CORPORATION

Synergy is a Colorado-based independent exploration and production company focused primarily on the development of its approximately 17,046 net acres in the Wattenberg Field in the Denver-Julesburg Basin ("D-J Basin") in Weld County, Colorado. In addition to the Company's Wattenberg Field acreage position, it has also assembled approximately 20,040 net acres directly to the northeast of the Wattenberg Field (the "Northern Extension Area"), which Synergy believes to be prospective for the Niobrara and Greenhorn formations. 

SAFE HARBOR

This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this press release regarding our financial position, business strategy, plans and objectives of management for future operations and industry conditions, and are forward-looking statements. When used in this press release, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements. 

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond the Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: general economic or industry conditions, nationally and/or in the communities in which Synergy conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, the ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting the Company's operations. 

These forward-looking statements are based on current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Synergy's control.