Surge Energy and Longview Oil complete business combination

Surge Energy Inc. and Longview Oil Corp. completed their previously announced business combination whereby Surge has acquired all of the issued and outstanding common shares of Longview pursuant to an arrangement under the Business Corporations Act (Alberta).

The arrangement, valued at approximately $430 million for Longview, includes Surge's previously announced acquisition of 9.3 million (19.8 percent) Longview common shares at a price of $4.45 per share. 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. In addition, Surge assumed $155 million of Longview net debt, including transaction costs.

The Longview acquisition fits well within Surge's operating strategy of investing growth capital to acquire high quality, operated, light and medium gravity crude oil reservoirs. The Longview acquisition also aligns with Surge's dividend-paying growth business model, as Longview's high netback properties possess a low annual decline of 19 percent, which provides significant annual free cash flow to Surge for distribution to shareholders.

Surge Energy is a Calgary based oil focused E&P company that has a high quality crude oil reserve, production and cash flow base.

Longview Oil, also headquartered in Calgary, is an oil and natural gas production and exploration company.

McCarthy T├ętrault LLP represented Surge Energy with a team including Jim Pasieka, Tom Cotter, Mark Franko, Hass Keshavji and Xiaodi Jin.

Burnet, Duckworth and Palmer LLP represented Longview Oil Corp. with a team including Jay Reid, Ted Brown, Lindsay Cox, Gina Ross and Jeff Sharpe.


Gina A. Ross Jeffrey E. Sharpe Jay P. Reid James Pasieka Lindsay P. Cox


McCarthy Tétrault LLP Burnet, Duckworth & Palmer LLP