CALGARY,
AB, Nov. 22, 2022 /CNW/ - Surge Energy Inc.
("Surge", "SGY", or the "Company") (TSX: SGY) is pleased to
announce the closing of the previously announced upsized,
bought-deal equity financing (the "Financing") of 7,568,000 common
shares of Surge ("Common Shares") at a price of $9.25 per Common Share, for gross proceeds of
approximately $70.0
million.
The Company has also granted to the Underwriters an
over-allotment option to purchase 1,135,200 additional Common
Shares, representing 15% of the size of the Financing. The
over-allotment option may be exercised until 30 days following the
closing of the Financing.
The net proceeds from the Financing are expected to be used to
partially fund the previously announced acquisition of core area
assets from Enerplus Canada. The Financing was underwritten by a
syndicate led by National Bank Financial Inc. and Peters & Co.
Limited (together with the syndicate members the
"Underwriters").
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements. The use
of any of the words "anticipate", "continue", "estimate", "expect",
"may", "will", "project", "should", "believe" and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. More particularly, this press release contains
statements concerning management's expectations regarding the
anticipated use of the net proceeds from the Offering; the timing
of various matters in connection with the Acquisition and the
Offering. The forward-looking statements are based on certain key
expectations and assumptions made by Surge, including the
Acquisition being completed on the timelines and on the terms
currently anticipated; all necessary regulatory approvals being
obtained on the timelines and in the manner currently anticipated;
the anticipated increases to the Company's syndicated first lien
credit facility and second lien term loans, and any consents or
approvals required in connection therewith; expectations.
Although Surge believes that the expectations and assumptions on
which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking
statements because Surge can give no assurance that they will prove
to be correct. Since forward-looking statements address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially
from those currently anticipated due to a number of factors and
risks. These include, but are not limited to, the risks associated
with the Acquisition and Offering, including timing of closing, if
closing is completed, that the benefits thereof will not be as
anticipated, the conditions to closing are not satisfied or waived
and receipt of any regulatory approvals; risks associated with the
condition of the global economy, including trade, public health
(including the impact of COVID-19) and other geopolitical risks;
risks associated with the oil and gas industry in general (e.g.
operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks); commodity price and exchange rate
fluctuations and constraint in the availability of services,
adverse weather or break-up conditions; uncertainties resulting
from potential delays or changes in plans with respect to
exploration or development projects or capital expenditures; and
failure to obtain the continued support of the lenders under
Surge's bank line. Certain of these risks are set out in more
detail in Surge's Annual Information Form dated March 9, 2022 and in Surge's Management
Discussion & Analysis for the year ended December 31, 2021, both of which have been filed
on SEDAR and can be accessed at www.sedar.com.
The forward-looking statements contained in this press release
are made as of the date hereof and Surge undertakes no obligation
to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.
For more information about Surge, visit our website at
www.surgeenergy.ca
Neither the TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) accepts responsibility
for the adequacy or accuracy of this release.
For more information about Surge, visit our website at
www.surgeenergy.ca
SOURCE Surge Energy Inc.