A total of 9,300,000 common shares of Longview Oil Corp. (TO: LNV.TO) were acquired by Surge Energy Inc. (TO: SGY.TO), Surge said Feb. 28.
The shares were a 19.8% block of the total outstanding common share amount, the company added. They were purchased at $4.45 each, the company said, noting that they were acquired pursuant to a bought deal secondary offering.
The shares sold in the bought deal secondary offering were sold by an existing Longview Oil shareholder, also on Feb. 28, Surge added.
Surge will use the acquisition to obtain an equity position in Longview and pursue a business combination, the company said.
Surge Energy had been approached by the secondary offering’s underwriters regarding the purchase of the 9,300,000 common share block, the company said.
Surge predicts more than CA$175 million of credit availability from the purchase, the company said.
Surge Energy Inc., based in Calgary, is an oil E&P company operating in western and southeast Alberta, southwest Saskatchewan and the Saskatchewan-Manitoba portions of the Williston Basin.
Longview Oil Corp., also based in Calgary, acquires oil assets of Advantage Oil & Gas Ltd. (TO: AAV.TO), in west-central Alberta, southeast Saskatchewan and the Lloydminster area of Saskatchewan .
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