Surge Energy Inc. acquires Mount Bastion Oil & Gas Corp. for US$237M

CANADA - Surge Energy Inc. (SEI) agreed to acquire the entire share capital of Mount Bastion Oil & Gas Corp. (MBO), a Calgary-based producer of crude petroleum and natural gas, for a total CAD 312.457 mil (USD 236.961 mil), in a stock swap transaction, via scheme of arrangement. SEI offered a choice of CAD 312.457 mil (USD 236.961 mil) in cash, or CAD 312.457 mil (USD 236.961 mil) in common shares, or CAD 145 mil (USD 109.965 mil) cash and 75.431 mil common shares valued at CAD 167.457 mil (USD 126.996 mil), subject to proration whereby CAD 145 mil (USD 109.965 mil) was to be paid in cash and 75.431 mil common shares. The shares were valued based on SEI's closing stock price of CAD 2.22 (USD 1.684) on 4 September 2018, the last full trading day prior to the announcement.

Date Announced: 09/05/2018
Deal Status (as of publication date): Pending
Deal Value (US mil): $236.96

ACQUIRER ADVISORS*
GMP FirstEnergy (Financial Advisor)
Macquarie Group (Financial Advisor)
McCarthy Tétrault LLP (Legal Advisor)
TARGET ADVISORS
Undisclosed

Mount Bastion Oil & Gas Corp., located in Calgary, Alberta, is engaged in the crude petroleum and natural gas services business.

Surge Energy Inc., located in Calgary, Alberta, is an oil and gas exploration and production company with operations in Alberta, Manitoba and North Dakota. The Company was founded in 1998.

*List of advisors are those known at press time.