The two Calgary-based oil and gas companies said their businesses are a good fit with one another.
"The proposed transaction results in the formation of an elite, intermediate, light and medium oil focused, dividend paying, growth company," they said.
"The combined asset base will be strategically focused in the Williston Basin and Central Alberta with significant complimentary reserves, production, land and operations."
Surge already holds a roughly 19.8 per cent stake in Longview that it bought earlier this year for about $41 million or $4.45 per share.
They said shareholders of both companies will benefit from higher dividends after the proposed combination, which requires approval from two-thirds of Longview shareholders.
Longview shareholders are being offered 0.975 of a Surge common share. In addition, Surge will assume $155 million of debt owed by Longview.
Based on the Tuesday closing price, the offer was worth about $5.87 per Longview share.
Longview shareholders will be asked to vote on the offer in June.
Assuming the deal is successful, Surge is expected to finish off 2014 producing more than 21,000 barrels of oil equivalent per day.
As well, Surge said it will increase its annual dividend by 11 per cent to 60 cents per share.
Longview shares closed up 28 cents at $5.77 on the Toronto Stock Exchange on Tuesday, while Surge's dropped 12 cents to $6.02.