By OGJ editors
HOUSTON, Dec. 1 -- Surge Global Energy Inc. agreed to acquire a private Alberta oil sands company in a cash-stock transaction valued at $16 million (Can.) total. The name of the private company was not disclosed.
Closing is expected Jan. 18, 2007. The agreement calls for owners of the private company to receive $6.3 million in cash and $10 million in equity in Cold Flow Energy ULC, a wholly owned subsidiary of Surge, based in San Diego, Calif.
The oil sands company owns 30% interest in 86,400 acres in the Red Earth area of Alberta. The development involves four major contiguous blocks close to existing services and infrastructure.