Surge Energy Inc. has entered into an agreement to acquire (the "Acquisition") a high quality, low decline, operated, crude oil producing asset strategically located near Wainwright in the Company's core area of Central Alberta (the "Assets"). The Assets include over 980 barrels per day of primarily medium gravity crude oil production (with a historical 9 percent annual decline), producing from the Sparky Formation. The purchase price for the Assets is $76.8 million, payable in cash (the "Purchase Price").
As a result of the Acquisition, Surge will again be revising upward the Company's 2013 exit guidance and 2014 full year guidance, as set forth below.
In addition, based on the Acquisition which is expected to be accretive and better than anticipated operational and drilling results, Surge will now be increasing the Company's annual dividend four percent from $0.50 per share per year ($0.04166 per share per month), to $0.52 per share per year ($0.04333 per share per month).