Surge Energy Makes ‘Exciting Reentry’ with Astra Oil Acquisition
Surge Energy had previously exited the region through the sale of its southeast Saskatchewan and Manitoba assets in 2015 to Torc Oil & Gas for CA$430 million.
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Surge Energy Inc. agreed to acquire Astra Oil Corp., which the company said represents an “exciting reentry” into southeast Saskatchewan for the Surge team.
The Astra acquisition will be funded through the issuance of Surge common shares and the assumption of approximately CA$15 million of net debt for total consideration of roughly CA$160 million. The assets include more than 4,100 boe/d (90% liquids) of operated, light oil production with an operating netback of more than $42 per boe at US$65 WTI pricing.
Estevan– Mid-February to the first week of March is traditionally the peak of the year for oilwell drilling activity. And on Feb. 22, there were 31 drilling rigs working in Saskatchewan, down markedly from the previous two years. According to Rig Locator (riglocator.ca), in 2020 there were 65 rigs working on the same date, and 52 rigs working on that date in 2019. During the boom years, from 2008-2014, there would be closer to 100 rigs working. While the current number couldn’t be considered great by any means, it is significantly higher than the zero rigs that were drilling in the first part of the summer of 2020, when oil markets were initially recovering from the shock of the COVID-19 pandemic.
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One week into the new year, Saskatchewan’s drilling rig fleet is up and running, with 29 rigs in the field on Jan. 8, according to Rig Locator (riglocator.ca). Those 29 rigs also mark a high . . .
Estevan – One week into the new year, Saskatchewan’s drilling rig fleet is up and running, with 29 rigs in the field on Jan. 8, according to Rig Locator (riglocator.ca). Those 29 rigs also mark a. . .