Andrew Greenslade, president and chief executive officer of Astra, stated: "We are very excited about the transaction with Surge. With Surge's high-quality, low-decline, crude oil asset base, their dominant Sparky play and their exciting financial free cash flow torque to rising oil prices, we feel that pro forma Surge/Astra will prove to be one of the best-positioned intermediate crude oil public companies in Canada as the recovery in energy continues. Astra's high-netback, SE Saskatchewan light oil asset base, low debt leverage and its large 10-year drilling inventory nicely complements Surge's existing, low-cost, conventional crude oil assets."
Transaction metrics
Purchase price: $160-million
Annual net operating income: $58.1-million
Current production: greater than 4,100 boe per day (87 per cent light oil)
Proven plus probable reserves (a): 16.6 million boe (73 per cent light oil (b))
Proven plus probable RLI (reserve life index): 11 years
Estimated operating netback at $65 (U.S.) WTI (c) (5): $42 per boe
Liability management rating (LMR): 5.4
Total asset retirement obligation (ARO): $12.9-million