Synergy Resources Corporation Acquires Leases Totaling Over 4,000 Acres

Synergy Resources Corporation, a developmental stage oil and gas exploration and production company, today announced that it has been awarded various leases under a State of Colorado Lease Auction comprising 1,600 acres with the potential of 75+ well sites. The Company has also signed additional leases in Nebraska and Weld County, Colorado comprising an additional 2,873 acres.

Synergy’s first well, the Gray 25-16 State Well, located in Weld County, Colorado drilled in November 2008 with Kerr McGee will be stimulated/fraced as a dual completion in the Codell and Niobrara formations on January 15, 2009. Previously reported, this well had 21 feet of pay zone with greater than 10% porosity and with peak porosity in the 18% range. The Niobrara also had similar good shows. Further information will follow as the well is completed.

Additionally, Synergy announced the successful drilling of its second Codell/Niobrara well – Zabka State 33-15, with Kerr McGee Oil & Gas Onshore, on December 15, 2008. The Zabka 33-15 State Well reached a total depth of 7,514 feet and encountered 22 feet of pay zone with greater than 10% porosity in the Codell formation. The Niobrara also had positive shows and will be an excellent completion candidate. This well will also be completed and brought on line in the coming weeks.

Synergy also reported that on December 23, 2008, Petroleum Management LLC received final approval from the City of Greeley on the Meyer and Northridge prospects. On October 9, 2008, the Colorado Oil and Gas Conservation Commission granted 14 drilling permits for the Meyer and Northridge prospects. Synergy has an option with Petroleum Exploration & Management LLC to acquire these leases, which contain 320 acres in Weld County, Colorado.

More company news and information is available at www.SYGRinfo.com.