Surge Energy Inc. said June 15 it closed its C$430 million (US$349.6 million) sale of assets in southeast Saskatchewan and Manitoba to Torc Oil & Gas Ltd.

The assets have roughly 4,750 barrels of oil equivalent per day (boe/d) of crude oil production and more than 23 MMboe of independently engineered proven plus probable reserves.

Surge, based in Calgary, Alberta, said selling the assets "will allow the company to thrive, compete and grow in the present lower crude oil price environment. It will also allow Surge shareholders to enjoy the significant per share upside growth leverage inherent in the company's Upper Shaunavon (and Lower Shaunavon), Sparky and Valhalla plays."

Surge also had its bank line confirmed by the company's bank syndicate at C$425 million (US$345.5 million)—post the sale of assets described above—with current net debt of about C$122 million (US$99.2 million).

Macquarie Capital Markets Canada Ltd. was exclusive financial adviser to Surge in connection with the transaction. GMP Securities LP and Scotia Waterous were the company's strategic advisers.