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Surge Energy Inc. Announces Closing of Strategic $106 Million Asset Sale; Positive Credit Facilities Re-Determination
Surge Energy Inc. Announces Closing of Strategic $106 Million Asset Sale; Positive Credit...
About this update from Surge Energy Inc.
[{"type":"text","content":"\n \n \n \n Surge Energy Inc. Announces Closing of Strategic $106 Million Asset Sale; Positive Credit Facilities Re-Determination\n \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; VERTICAL-ALIGN: BOTTOM; BORDER-BOTTOM:black 0pt; TEXT-ALIGN: LEFT; PADDING-LEFT:0.50em; BORDER-LEFT:black 0pt; PADDING-RIGHT:0.50em\n}\n.prnvat{\nVERTICAL-ALIGN: TOP\n}\n.prntal{\nTEXT-ALIGN: LEFT\n}\n.prnpr6{\nPADDING-RIGHT:0.50em\n}\n.prnsblb0{\nBORDER-LEFT:black 0pt\n}\n.prnsbt0{\nBORDER-TOP:0pt\n}\n.prnpl6{\nPADDING-LEFT:0.50em\n}\n.prnrbrb0{\nBORDER-RIGHT:black 0pt\n}\n.prnbcc{\nBORDER-COLLAPSE: COLLAPSE\n}\n.prnsbl0{\nBORDER-LEFT:0pt\n}\n.prnsbtb0{\nBORDER-TOP:black 0pt\n}\n.prnsbb0{\nBORDER-BOTTOM:0pt\n}\n.prnsbr0{\nBORDER-RIGHT:0pt\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n CALGARY, AB\n \n ,\n \n March 25, 2021\n \n /CNW/ - Surge Energy Inc. (\"Surge\" or the \"Company\") (TSX: SGY) is pleased to announce it has successfully completed its previously announced strategic\n \n $106 million\n \n asset sale (the \"Sale\"), and finalized a positive re-determination of the Company's credit facilities.\n \n \n \n \n \n \n \n \n \n \n ACCRETIVE ASSET SALE COMPLETED\n \n \n \n Surge has now closed its previously announced strategic Sale, providing a significant, immediate, positive impact on the Company's balance sheet. As a result of the Sale transaction, Surge's bank indebtedness is reduced by over\n \n $100 million\n \n , and its annual interest expense is anticipated to decrease by approximately\n \n $10 million\n \n .  On this basis, Surge received a \"corporate\" cash flow multiple of 5.3 times\n \n 1\n \n on the Sale.\n \n \n Following the Sale, Surge maintains a high quality, low decline, medium and light oil asset base – with large original oil in place (\"OOIP\")\n \n 2\n \n reservoirs, high netbacks, and a large internally estimated drilling inventory of over 750 locations\n \n 3\n \n (>14 year inventory).\n \n \n In 1H/21, Surge anticipates adding over 3,200 boepd from the Company's 32 well drilling...