Brief: Surge Energy Announces Accretive $320 Mln Core Area Light Oil Acquisition

SURGE ENERGY

06/09/2018 04:35

Sept 5 (Reuters) - Surge Energy Inc  SGY.TO :
    * ANNOUNCES ACCRETIVE $320 MILLION CORE AREA LIGHT OIL
ACQUISITION
    * TRANSACTION IS 11 PERCENT ACCRETIVE TO SURGE'S FORECAST
2019
ADJUSTED FUNDS FLOW PER SHARE
    * CO AND MOUNT BASTION OIL AND GAS CORP ENTERED INTO AN
ARRANGEMENT AGREEMENT
    * SEES INCREASING DIVIDEND BY 25 PERCENT, TO $0.125 A SHARE
ANNUALLY ($0.0104 A MONTH), WHILE IMPROVING CO'S ALL-IN PAYOUT
RATIO FROM 89 PERCENT TO 87 PERCENT
    * PURSUANT TO ARRANGEMENT AGREEMENT VO AGREED TO ACQUIRE ALL
OF
ISSUED AND OUTSTANDING COMMON SHARES OF MBOG BY STATUTORY
ARRANGEMENT
    * AGGREGATE CONSIDERATION TO BE PAID TO HOLDERS OF MBOG
SHARES
WILL BE $145 MILLION IN CASH AND 75,431,034 SURGE SHARES
    * UPON COMPLETION OF TRANSACTION, SURGE'S PROJECTED 2018
PRODUCTION EXIT RATE IS NOW EXPECTED TO INCREASE TO MORE THAN
22,500 BOEPD
    * TRANSACTION INCREASES CO'S DECEMBER 31, 2017 INDEPENDENTLY
ENGINEERED NET ASSET VALUE (SPROULE) FROM $6.06 PER SHARE TO AN
ESTIMATED $6.52 PER SHARE
    * COMPANY ESTIMATES THAT Q4 2019 NET DEBT TO ANNUALIZED
ADJUSTED
FUNDS FLOW RATIO WILL BE 1.62 TIMES
    * AGGREGATE PURCHASE PRICE PAYABLE BY SURGE UNDER
TRANSACTION WILL
BE $320 MILLION

Source text for Eikon:  urn:newsml:reuters.com:*:nCNW1khqDa
Further company coverage:  SGY.TO 

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