U.S. Energy surges after $99.5 mln oil and gas buyouts

Big Sky Industrial

05/10/2021 13:24

** Shares of the oil and gas producer  USEG.O  soar 25.6% to
$5.93 in premarket trade
    ** Stock set for biggest pct rise in more than eight months,
if gains hold
    ** Almost 4x 25-DMA shares traded; one of top three heaviest
volumes and pct gainers before the opening bell
    ** USEG says it is entering cash-and-stock deals worth $99.5
mln including debt, as it buys certain oil and gas assets from
Lubbock Energy Partners LLC, Synergy Offshore LLC, and certain
entities controlled by Sage Road Capital, LLC
    ** USEG says deal will more than quadruple its estimated
average daily production to 1,814 barrel oil equivalents per day
(BOE/d)
    ** Deal expected to close in Q4; private seller cos will own
about 80.8% of USEG stock, USEG shareholders will own 19.2%
    ** Stock up 28% YTD as of Monday's close

 (Reporting by Ruhi Soni in Bengaluru;)
 ((Ruhi.Soni@thomsonreuters.com;))