RE:RE:What kind of S-bag rushes out to dillute the company at 10% Yeah well...same thing happened a few years ago in 2018.
Acquision of Mt. Basion, anticipated dividend increase of 25% and it never happened.
So track record not very good!!
CALGARY, Sept. 5, 2018 /CNW/ - Surge Energy Inc. ("Surge" or the "Company") (TSX: SGY) and Mount Bastion Oil and Gas Corp. ("Mount Bastion" or "MBOG") have announced that they have entered into an arrangement agreement (the "Arrangement Agreement"), pursuant to which Surge has agreed to acquire all of the issued and outstanding common shares of MBOG ("MBOG Shares") by way of a statutory arrangement (the "Transaction").
The Transaction is 11 percent accretive to Surge's forecast 2019 adjusted funds flow per share1, and adds over 600 million barrels of net internally estimated light original oil in place ("OOIP"2), concentrated reserves, production, land, and operations. The addition of the MBOG assets (the "MBOG Assets") increases Surge's operating netback per boe by 12 percent, and is forecast to add over $85 million of net operating income1 in 2019.
Surge anticipates increasing its dividend by 25 percent, from $0.10 per share annually ($0.00833 per month) to $0.125 per share annually ($0.0104 per month), while improving Surge's all-in payout ratio from 89 percent to 87 percent. Any dividend increase will be subject to the approval of Surge's Board of Directors with consideration given to the business environment upon closing of the Transaction.