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Surge Announces Approval of Normal Course Issuer Bid
Surge Announces Approval of Normal Course Issuer Bid Canada NewsWire CALGARY, Fe...
About this update from Surge Energy Inc.
[{"type":"text","content":"\n\n\n\nSurge Announces Approval of Normal Course Issuer Bid\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Feb. 20, 2018\n\n\n\nCALGARY, Feb. 20, 2018 /CNW/ - Surge Energy Inc. (\"Surge\" or the \"Company\") (TSX: SGY) is pleased to announce that the Toronto Stock Exchange (the \"TSX\") has accepted Surge's notice of intention to make a normal course issuer bid for its outstanding common shares in accordance with the rules and policies of the TSX.\n\nSurge believes that the market price of its common shares, in today's current oil price environment, does not accurately reflect their underlying value, making the purchase of common shares an attractive investment and an advantageous use of Surge's capital spending.  Surge's new independently engineered total proved (\"1P\") net asset value (\"NAV\") is $3.671 per share, utilizing Sproule's 2017 year end engineering price deck, and the Company's new proved developed producing (\"PDP\") NAV is $2.011 per share.  \n\nSurge's common shares are presently trading at a price of $1.88 per share on the TSX.  As such, the repurchase of the Company's common shares at these levels represents a return of more than 195 percent, based on Surge's 1P NAV.\n\nThe Company is currently generating significant annualized free funds flow, based on budget pricing assumptions and current strip WTI pricing. Surge has approximately $100 million of credit availability on its bank line.\n\nSurge expects that the purchase of its common shares will benefit remaining shareholders by increasing their equity ownership interest in Surge's high quality, light and medium, crude oil assets. Further, Surge does not have to pay a dividend on common shares that it acquires pursuant to the NCIB - thereby improving the Company's sustainability.\n\nAs of February 9, 2018 and February 20, 2018, there were 233,069,499 common shares issued and outstanding.  As approved by the TSX, Surge is authorized to purchase up to 11,653,475 common shares under the normal course issuer bid, representing approximately 5 percent ...