Surge Energy acquires Midland basin assets for $420 million

Surge Energy America, a subsidiary of Surge Energy US Holdings Co., Houston, agreed to acquire Midland basin leasehold interest and producing wells from Grenadier Energy Partners II LLC (GEP II) for an aggregate purchase price of $420 million.

The Howard County, Tex., acreage to be acquired includes average production of 9,000 boe/d (75% oil), 18,010 net leasehold acres, and an operated inventory of 120 future drilling locations.

The deal is expected to close late in this year’s first quarter.