Surge Energy America Announces Bolt-On Acquisition in Howard County

News provided by

Aug 11, 2021, 21:08 ET

HOUSTON, Aug. 11, 2021 /PRNewswire/ -- Moss Creek Resources Holdings, Inc. (the "Company"), a wholly owned subsidiary of Surge Energy US Holdings Company, has acquired leasehold interest and wells from Apache Corporation ("Apache") in Howard County, TX (the "Transaction"). The aggregate purchase price of the Transaction at closing was $37.5 million USD.

Highlights of the acquired assets include:

Approximately 4,000 net leasehold acres (100% held-by-production) adjacent to existing leasehold position in Howard County
Approximately 800 net barrels of oil equivalent per day of production
Includes salt water disposal infrastructure and approximately 960 surface acres
Adds approximately 14 net drilling locations primarily through increased lateral lengths and working interests

"This acquisition is consistent with our objective of strategically adding to our portfolio," stated Chief Executive Officer Linhua Guan. "Based on the location of this acreage, it allows us to extend laterals from our existing leasehold that should result in increased economics and capital efficiency."

The Transaction closed on July 30.

About Surge Energy

Surge Energy US Holdings Company is an independent oil and natural gas company focused on the development, exploitation, production and acquisition of oil and natural gas reserves in the Midland Basin of West Texas, one of three primary sub-basins of the Permian Basin. The Company is headquartered in Houston, Texas, and currently holds approximately 113,000 net acres in the Permian Basin. For more information, visit our website at www.surgeenergya.com.

SOURCE Surge Energy