On November 2, 2022, Surge Energy Inc. announced a $70.0 million common share offering to partially fund its $245 million acquisition of petroleum and natural gas assets in Alberta, Saskatchewan, and Manitoba. The offering, which closed on November 22, 2022, included 7,568,000 common shares priced at $9.25 per share. Additionally, Surge issued 3,783,784 common shares valued at $35 million to the vendor as part of the purchase price. To finance the remaining cash portion, Surge expanded its First Lien Credit Facilities to $210 million and secured an additional $40 million in term debt. The acquired assets, producing ~3,850 boepd (99% oil), add 15.0 MMboe in proved plus probable reserves to Surge’s portfolio.

The offering was led by National Bank Financial Inc. and Peters & Co. Limited, with participation from ATB Capital Markets Inc., Canaccord Genuity Corp., Cormark Securities Inc., Raymond James Ltd., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Acumen Capital Finance Partners Limited, and Velocity Trade Capital Ltd. Legal advisors included McCarthy Tétrault LLP for Surge and Stikeman Elliott LLP for the underwriters. The Toronto Stock Exchange (TSX) approved the listing of the newly issued shares, marking a significant step in Surge’s strategic growth.