TORC Oil & Gas Ltd. has agreed to acquire producing and undeveloped acreage in southeastern Saskatchewan from Surge Energy Inc. for $430 million (Can.) cash. Both companies are based in Calgary.
TORC Oil & Gas Ltd. has agreed to acquire producing and undeveloped acreage in southeastern Saskatchewan from Surge Energy Inc. for $430 million (Can.) cash. Both companies are based in Calgary.
The acquisition includes 4,750 boe/d of production, 98% light oil and liquids, with an average decline rate of about 20%/year. Reserves estimates are 12.5 million boe proved and 9 million boe proved, developed, producing.
The land covers more than 80 net sections, with more than 40,000 net acres undeveloped.
Surge said its sale of the properties is part of a strategy to reduce debt and focus investment on two plays elsewhere in Saskatchewan and in northwestern Alberta.