CALGARY, Nov. 15, 2017 /CNW/ - Surge Energy Inc.
("Surge" or the "Company") (TSX: SGY) is pleased to announce that
it has closed its previously announced Convertible Debenture
Financing (the "Financing") agreement with a syndicate of
Underwriters, led by NBF, pursuant to which the Underwriters
purchased $44.5 million principal
amount of Debentures at a price of $1,000 per Debenture, on a "bought deal" basis.
(the "Closing"). The Company granted to the Underwriters an option
(the "Over-Allotment Option") to purchase up to an additional 4,500
Debentures at a price of $1,000 per
Debenture, which the Underwriters exercised in full.
The net proceeds from the Financing and exercised Over-Allotment
Option were used to pay down a portion of the outstanding
indebtedness under the Company's revolving term credit
facility.
Following the Closing of the Financing, Surge now has more than
$75 million of excess credit
availability under its current revolving credit facility (prior to
receiving any lending value attributed to the Acquisition disclosed
in the Company's October 26, 2017
press release).
The Debentures offered, and the Common Shares issuable on
conversion thereof, have not and will not be registered under the
U.S. Securities Act of 1933, as amended (the "Act"), and may not be
offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements under the Act. This press release
does not constitute an offer to sell or a solicitation of any offer
to buy the common shares in the United
States.
FORWARD LOOKING STATEMENTS:
This press release contains forward-looking statements.
The use of any of the words "anticipate", "continue", "estimate",
"expect", "may", "will", "project", "should", "believe" and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements.
More particularly, this press release contains statements
concerning: the Financing and the excess credit availability under
the Corporation's current revolving credit facility.
The forward-looking statements are based on certain key
expectations and assumptions made by Surge, including expectations
and assumptions concerning the impact of the Financing on Surge's
credit facility.
Although Surge believes that the expectations and assumptions on
which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking
statements because Surge can give no assurance that they will prove
to be correct. Since forward-looking statements address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially
from those currently anticipated due to a number of factors and
risks. These include, but are not limited to, risks associated with
the oil and gas industry in general (e.g., operational risks in
development, exploration and production; delays or changes in plans
with respect to exploration or development projects or capital
expenditures; the uncertainty of reserve estimates; the uncertainty
of estimates and projections relating to production, costs and
expenses, and health, safety and environmental risks), commodity
price and exchange rate fluctuations and constraint in the
availability of services, adverse weather or break-up conditions,
uncertainties resulting from potential delays or changes in plans
with respect to exploration or development projects or capital
expenditures or failure to obtain the continued support of the
lenders under Surge's bank line. Certain of these risks are set out
in more detail in Surge's Annual Information Form dated
March 15, 2017 and in Surge's
MD&A for the period ended December 31,
2016, both of which have been filed on SEDAR and can be
accessed at www.sedar.com.
The forward-looking statements contained in this press release
are made as of the date hereof and Surge undertakes no obligation
to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.
Neither the TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) accepts responsibility
for the adequacy or accuracy of this release.
SOURCE Surge Energy Inc.