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09:26 AM EDT, 05/13/2021 (MT Newswires) -- Surge Energy (SGY.V) on Thursday released preliminary guidance for production and cash flow in 2022 as it announced the completion of a bought deal public offering of flow-through common shares, raising gross proceeds of just over C$23 million. The company issued 38,985,000 flow-through shares at $0.59 apiece. Underwriters led by Cormark Securities Inc. and National Bank Financial Inc. fully exercised their overallotment option of up to 15% of the initially offered shares. Proceeds from the offering will be used for Surge's expanded development program for the second half of 2021. Meanwhile, Surge is budgeting $83 million for its 2022 exploration & development capital program and expects to maintain production at 16,500 barrels of oil equivalent per day. The company expects to generate $62 million or $0.16 per share of free cash flow next year, representing a yield of about 28%. Surge also added that the maturity of its first lien credit facilities has been extended to July 1, 2022, from Dec. 30 this year. Price: 0.5400, Change: -0.0100, Percent Change: -1.82 |