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Surge Energy Inc. Announces Closing of Accretive $320 Million Light Oil Acquisition; $200 Million Increase to Credit Facility; Anticipated Dividend Increase; Q3/18 Production Exceeds 2018 Exit Rate
Surge Energy Inc. Announces Closing of Accretive $320 Million Light Oil Acquisition; $200 ...
About this update from Surge Energy Inc.
[{"type":"text","content":"\n\n\n\n\nSurge Energy Inc. Announces Closing of Accretive $320 Million Light Oil Acquisition; $200 Million Increase to Credit Facility; Anticipated Dividend Increase; Q3/18 Production Exceeds 2018 Exit Rate\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.prngen2{\nBORDER-TOP:black 0pt; BORDER-RIGHT:black 0pt; BORDER-BOTTOM:black 0pt; PADDING-LEFT:0.50em; BORDER-LEFT:black 0pt; PADDING-RIGHT:0.50em\n}\n.prnsbt0{\nBORDER-TOP:0pt\n}\n.prnsbr0{\nBORDER-RIGHT:0pt\n}\n.prnbcc{\nBORDER-COLLAPSE: COLLAPSE\n}\n.prnsbl0{\nBORDER-LEFT:0pt\n}\n.prnsbb0{\nBORDER-BOTTOM:0pt\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Oct. 25, 2018\n\n\n\nCALGARY, Oct. 25, 2018 /CNW/ - Surge Energy Inc. (\"Surge\" or the \"Company\") (TSX: SGY) is pleased to announce that it has successfully completed the previously announced acquisition (the \"Acquisition\") of Mount Bastion Oil & Gas Corp. (\"MBOG\") pursuant to an arrangement (the \"Arrangement\") under the provisions of the Business Corporations Act (Alberta).\nSPECIAL MEETING RESULTS; GREATER THAN 99% VOTE IN FAVOR\nAll of the issued and outstanding common shares of MBOG were acquired by Surge for aggregate consideration consisting of $145 million in cash and approximately 75.4 million common shares of Surge (\"Surge Shares\"). At the special meeting of Surge shareholders to approve the issuance of the Surge Shares pursuant to the Acquisition, held on October 24, 2018, 42.79% of the outstanding Surge Shares were represented and the issuance was approved by 99.31% of the Surge Shares voted at the meeting. \nINCREASE TO CREDIT FACILITY\nEffective today, Surge's revolving credit facility was increased by 57 percent from $350 million to $550 million. As of the close of the Acquisition, approximately $400 million is currently drawn on the credit facility, providing Surge with approximately $150 million in available liquidity. \nDIVIDEND INCREASE\nAs previously announced, Surge anticipates increasing its dividend by 25 percent, from $0.10 per share annually ($0.008333 per month) to $0.125 per share annually ($0.0104166 per month). The proposed increase i...