The Colorado Oil and Gas Conservation Commission has granted seven drilling permits to Synergy Resources for wells included in leases for which Synergy has the option to purchase. The permits, granted on October 9, 2008, are for the Meyer prospect in Greeley, Colorado. City of Greeley approvals for these drill sites are still pending.
The Company has a letter of intent with Petroleum Exploration and Management, LLC, which provides the Company with the option to acquire interests in oil and gas leases covering lands in the Denver-Julesburg ("D-J") basin in northeast Colorado. The oil and gas leases cover 640 acres in Weld County, Colorado and include the Meyer prospect wells.
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