The Calgary-based oil and gas producer also says it is increasing its monthly dividend by four per cent to just over 4.3 cents per share, or to 52 cents per year, up from 50 cents.
As a result of the acquisition, which Surge describes as a high quality, low decline crude oil producing asset near Wainwright, the company said it would be revising upward the company's 2013 exit guidance and 2014 full-year guidance.
In conjunction with purchase, Surge has entered into a $55-million bought deal financing with a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd.
The offering is for 8.4 million subscription receipts at a price of $6.55 per receipt, each entitling the holder to receive one common share of the company.
The underwriters will have an option to purchase up to an additional 15 per cent of the subscription receipts, on the same terms, exercisable in whole or in part at any time up to the 30th day following initial closing of the financing.
On the Toronto Stock Exchange, Surge Energy shares were up 26 cents, or 4.18 per cent, at $6.48 on Wednesday.Suggest a correction