Surge Energy Inc. has now closed two previously announced strategic, high quality light oil acquisitions.
The first acquisition (the "Privateco Acquisition") involved the $147 million purchase of all of the shares of a Calgary based private oil and gas company ("Privateco"), with high netback, operated, producing light oil assets focused in the Steelman area of SE Saskatchewan, and the Dodsland area of SW Saskatchewan (the "Privateco Assets"). The consideration to be paid to the shareholders of Privateco was comprised of 20.2 million shares of Surge and cash consideration elected by Privateco shareholders of $3.0 million, plus the assumption of $23 million of debt.
With the second acquisition (the "Asset Acquisition"), Surge acquired high quality, high netback, operated, producing light oil assets primarily located in the SW area of Manitoba (the "Manitoba Assets"). Total consideration of $135 million paid to the vendor of the Manitoba Assets was comprised of 14.2 million shares of Surge, and $50 million of cash.