​Surge Energy to buy Fire Sky Energy in deal worth $58 million

Surge Energy Inc. says it has signed a deal to buy Fire Sky Energy Inc. in an agreement valued at $58 million.

CALGARY -- Surge Energy Inc. says it has signed a deal to buy Fire Sky Energy Inc. in an agreement valued at $58 million.

Fire Sky owns assets producing more than 1,500 barrels of oil equivalent per day focused in Surge's core area in southeast Saskatchewan.

The deal will see Surge issue 11.2 million shares and assume about $3 million in net debt.

Surge says the transaction adds highly concentrated light oil reserves, production, land and infrastructure in a core area for the company.

The deal is expected to close by Oct. 30.

Surge forecasts that following the transaction its average production next year will be 21,500 boepd.