Surge Energy Inc., Calgary, will acquire 5,500 boe/d of production, mostly light oil, in western Alberta now operated by Mount Bastion Oil & Gas Corp.
Surge has agreed to acquire all shares of Mountain Bastion for cash and stock worth a total of $320 million (Can.), up to $145 million of which will be cash.
The acquisition covers 25 million boe of proved and probable reserves, 98% of which is light oil in structural reef complexes of the Devonian Beaverhill Lake Group.
The acquired properties are near Surge’s light oil pools on waterflood at Nipisi and Nipisi South.
