Sept 5 (Reuters) - Surge Energy Inc SGY.TO :
* ANNOUNCES ACCRETIVE $320 MILLION CORE AREA LIGHT OIL ACQUISITION
* TRANSACTION IS 11 PERCENT ACCRETIVE TO SURGE'S FORECAST 2019 ADJUSTED FUNDS FLOW PER SHARE
* CO AND MOUNT BASTION OIL AND GAS CORP ENTERED INTO AN ARRANGEMENT AGREEMENT
* SEES INCREASING DIVIDEND BY 25 PERCENT, TO $0.125 A SHARE ANNUALLY ($0.0104 A MONTH), WHILE IMPROVING CO'S ALL-IN PAYOUT RATIO FROM 89 PERCENT TO 87 PERCENT
* PURSUANT TO ARRANGEMENT AGREEMENT VO AGREED TO ACQUIRE ALL OF ISSUED AND OUTSTANDING COMMON SHARES OF MBOG BY STATUTORY ARRANGEMENT
* AGGREGATE CONSIDERATION TO BE PAID TO HOLDERS OF MBOG SHARES WILL BE $145 MILLION IN CASH AND 75,431,034 SURGE SHARES
* UPON COMPLETION OF TRANSACTION, SURGE'S PROJECTED 2018 PRODUCTION EXIT RATE IS NOW EXPECTED TO INCREASE TO MORE THAN 22,500 BOEPD
* TRANSACTION INCREASES CO'S DECEMBER 31, 2017 INDEPENDENTLY ENGINEERED NET ASSET VALUE (SPROULE) FROM $6.06 PER SHARE TO AN ESTIMATED $6.52 PER SHARE
* COMPANY ESTIMATES THAT Q4 2019 NET DEBT TO ANNUALIZED ADJUSTED FUNDS FLOW RATIO WILL BE 1.62 TIMES
* AGGREGATE PURCHASE PRICE PAYABLE BY SURGE UNDER TRANSACTION WILL BE $320 MILLION