Sure Energy Closes Acquisition of Argent Energy
Sure Energy Inc. has closed the previously announced acquisition of Argent Energy Inc. ("Argent"). Sure Energy acquired all the issued and outstanding shares of Argent for approximately $4.8 million including the assumption of $2.7 million of debt and working capital. Sure Energy issued approximately 2.2 million common shares to shareholders of Argent. As a result of this transaction Sure Energy now has 30,767,177 basic shares outstanding, no debt, positive working capital and an undrawn bank line of $8.5 million.
Sure Energy's current production following the acquisition of Argent is approximately 400 BOE/d with 150 BOE/d behind pipe. The Company has 57,875 net acres of undeveloped land and 390,000 acres under option with Advantage Energy Trust. Sure Energy's prospect inventory has increased to over 39 drilling prospects and it has a base of high quality tax pools in excess of $38 million. Sure Energy's reserves are currently being updated by Sproule Associates Limited and the Company will be reporting those results later in the first quarter of 2008.