Surge Energy Inc. (TSX:SGY) agreed to acquire Long Life,Operated,High Operating Netback,Waterflooded Producing Oil Assets from Enerplus Corporation (TSX:ERF) for approximately CAD 250 million on November 2, 2022. The total consideration of CAD 245 million consists of CAD 210 million in cash and CAD 35 million in common shares in Surge Energy Inc, the consideration is subject to closing adjustments. The deal will have an effective date of May 1, 2022.

The deal will be funded by way of: CAD 38 million of net proceeds from the bought deal common equity financing; CAD 100 million in amortizing term loans from existing first lien and second lien lenders; CAD 27 million draw on the Company's existing first lien credit facility (which is expected to be drawn only CAD 50 million at Closing, with over CAD 100 million of undrawn, available capacity). In conjunction with the Acquisition, Surge Energy Inc. has entered into common equity financing with a syndicate of underwriters. The net proceeds from the Financing are expected to be used to partially fund the acquisition.

The Financing was underwritten by a syndicate led by National Bank Financial Inc. and Peters & Co. Limited. The transaction is expected to close in December 2022 with expected date being on or about December 19, 2022.

Tudor, Pickering, Holt & Co., LLC and Scotiabank acted as financial advisors to Enerplus Corporation. Peters & Co. Limited and National Bank Financial Inc. acted as financial advisors to Surge Energy Inc. ATB Capital Markets has been appointed as strategic advisors to Surge Energy Inc. McCarthy Tétrault LLP is acting as legal advisor to Surge Energy Inc. Scotiabank acted as financial advisor to Enerplus Corporation.