Treading Debt: Surge Energy Deal To Pay Down Tab

摘要

Surge Energy Inc. (TSE: SGY) is selling a bulk of its assets to pay off debt and fund exploration amid the low commodity market. Surge said April 27 it signed an agreement with Torc Oil & Gas Ltd. (TSE: TOG) to sell all of its southeast Saskatchewan and Manitoba assets for C$430 million (US$357.5 million). The assets have roughly 4,750 barrels of oil equivalent per day (boe/d) of crude oil production and more than 23 MMboe of independently engineered proven plus probable reserves. The transaction equates to $18.70/boe.