Increase in Bank Line Another vote of confidence in SGY
Surge Energy increases credit line to $250-million
2012-04-12 16:20 MT - News Release
Mr. Dan O'Neil reports
SURGE ENERGY INC. ANNOUNCES INCREASE IN BANK LINE FROM $175 MILLION TO $250 MILLION
Surge Energy Inc.'s banking syndicate, led by National Bank of Canada and including Bank of Nova Scotia, Canadian Imperial Bank of Commerce and ATB Financial, has increased the company's bank line from the previous $175-million to $250-million. The increase provides Surge with significant financial flexibility to execute its 2012 capital program.
With this bank line increase to $250-million and recent strip prices, the company forecasts 2012 year-end net debt of $152-million and exit annualized cash flow of $159-million based on Surge's 11,000-barrel-of-oil-equivalent-per-day (77 per cent oil and natural gas liquids) forecast exit production rate. This results in an exit annualized net debt to cash flow ratio of 1.0 with 39 per cent or $98-million of Surge's bank line undrawn at year-end.
Surge's annual general meeting is scheduled for 3 p.m. MST on May 10, 2012, at the Petroleum Club, Devonian room, located at 319-5th Ave. SW, Calgary, Alta.
We seek Safe Harbor.