Surge Closes on Divestment of Alberta Non-Core Gas Assets
Transaction Type
Sellers
Basin
Valhalla
Post Date
Close Date
Estimated Price
6.6BB
Description
Calgary, Alberta-based Surge Energy Inc. has closed a sale of its gas-weighted non-core assets in the Valhalla area of Alberta for CA$9.5 million (US$6.6 million) to an undisclosed buyer, the company said Dec. 19.
Over the past four years, Surge said it has focused on developing its core Sparky and southeast Saskatchewan crude oil assets, leaving the non-core assets undercapitalized for its portfolio.
The Sparky and SE Saskatchewan conventional assets will now represent 90% of Surge’s new 22,500 boe/d 2025 production guidance and more than 95% of its operating cash flow.
Production from the non-core assets in 2025 was forecasted to be approximately 1,250 boe/d (55% natural gas), Surge said.