Surge Energy (“Surge” or the “Company”) (TSX: SGY) announces the acquisition (the “Acquisition”) of a low decline, high netback, waterflooded, crude oil producing asset in its core Sparky area of Central Alberta. In addition, Surge has acquired two net undeveloped sections in the Company’s core operated Eyehill asset (collectively the “Assets”). Surge has identified up to 29 low risk, development drilling locations on the Assets.
As quoted in the press release:
The purchase price for the Assets is $37 million, subject to standard closing adjustments. The closing of the Acquisition occurred on April 12, 2017 (the “Closing”). The Acquisition is accretive to Surge on all key per share metrics. In addition, the two undeveloped sections at Eyehill are strategic to Surge for continued consolidation of this large, high quality, 130 million barrel OOIP, 29° API crude oil asset. The purchase of these two sections will allow the Company to continue its excellent Eyehill Sparky development drilling program, and the Company’s successful ongoing waterflood activities.