Surge Energy Inc. has entered into an agreement to acquire (the "Acquisition") certain high quality, low decline, operated, light oil producing assets strategically located in the Company's core area of SE Saskatchewan (the "Assets"). The Assets include an estimated annualized 1,250 boepd (97 percent oil) of high netback light crude oil production. The purchase price for the Assets is $109 million, payable in cash (the "Purchase Price").
As a result of the Acquisition, Surge will be revising upward the Company's 2014 guidance.
In addition, based on the accretive Acquisition, and better than anticipated operational and drilling results, Surge will be increasing the Company's annual dividend four percent from $0.52 per share per year ($0.04333 per share per month), to $0.54 per share per year ($0.045 per share per month).