Surge Energy (SGY-T) Aug 10, '15 is pleased to announce that the Toronto Stock Exchange has accepted Surge's notice of intention to make a normal course issuer bid for its outstanding common shares in accordance with the rules and policies of the TSX.
Surge believes that the market price of its common shares may not, from time to time, accurately reflect their underlying value, making the purchase of common shares an attractive investment and an advantageous use of Surge's funds. Surge expects that the purchase of common shares will benefit remaining shareholders by increasing their equity interest in Surge's assets.
Based on the current trading price of Surge common shares, management believes that, pursuant to the normal course issuer bid, the Company is acquiring its reserves at a purchase price of less than $7 per boe for independently engineered proven plus probable reserves. This provides a low risk recycle ratio of more than 3.5 times, based on Surge's Q2/15 operating netback of $26.53 per boe.
As of August 10, 2015 and as at August 7, 2015, there were 221,217,068 common shares issued and outstanding and the public float was 215,123,233 common shares. As approved by the TSX, Surge is authorized to purchase up to 21,512,323 common shares under the normal course issuer bid, representing approximately 10 percent of Surge's current public float. On any trading day, Surge will not purchase more than 25 percent of the average daily trading volume (average daily trading volume being 1,999,915) of the common shares for the past six calendar months calculated in accordance with the rules of the TSX, being 499,978 common shares per trading day, except where such purchases are made in accordance with the block purchase exemptions under the TSX rules. The normal course issuer bid will commence on August 12, 2015, and will terminate on August 11, 2016. Any common shares acquired will be cancelled.
All purchases under the bid will be purchased on the open market through the facilities of the TSX and alternative Canadian trading platforms at the prevailing market price at the time of such transaction. Macquarie Capital Markets Canada Ltd. will conduct the bid on behalf of Surge pursuant to an automatic purchase plan to be entered into between Surge and Macquarie.
ABOUT SURGE
Surge is an oil-weighted production and development company with high quality, large OOIP, crude oil reservoirs. Management is focused on delivering to its shareholders solid per share organic growth, sustainable monthly dividends, and further growth through accretive acquisitions of additional elite oil reservoirs. For further information visit our website at www.surgeenergy.ca.
Surge Energy Inc.
Paul Colborne
President & CEO
(403) 930-1011
(403) 930-1507
pcolborne@surgeenergy.ca
Surge Energy Inc.
Rod Monden
Controller
(403) 930-1011
(403) 930-1043
rmonden@surgeenergy.ca |
