Surge Energy (TSX:V.SGY, Stock Forum), a Calgary-based oil focused exploration and production firm, announced today that the company had completed its previously announced $430 million business combination where Surge acquired all of the issued and outstanding common shares of Longview Oil (TSX:LNV, Stock Forum).
According to the news release, “Under the Arrangement, which was approved by Longview shareholders by a 99.9% majority, Longview shareholders received 0.975 of a Surge common share for each Longview common share resulting in the issuance of approximately 38 million Surge common shares (Surge share price of $6.14 at March 31, 2014). In addition, Surge assumed $155 million of Longview net debt (including transaction costs).”
The release went on to note, “The Longview acquisition fits squarely within Surge's defined operating strategy of investing growth capital to acquire high quality, operated, light and medium gravity crude oil reservoirs, with large original oil in place ("OOIP"1) and low recovery factors. Surge now has over 1.9 billion barrels of light and medium gravity OOIP under the Company's ownership and management, more than 1,000 lower risk development drilling locations, and a portfolio of high quality waterflood projects.”