Surge Energy has struck a deal to acquire Fire Sky Energy. This is a very good deal for Surge, which is a company that specializes in buying smaller rivals and/or assets from bigger companies. If the two operations and customer bases are compatible and if the price is right, it might make sense to manage them together.
The proposed transaction is to issue 11.2 million shares and assume net debt of about $3 million, thus increasing the company’s land holdings, production, and reserves by a factor of three. The transaction is expected to be completed within two months. After this deal, Surge expects to have a lot of concentrated…
