Surge Energy US Holdings Co. agreed on Jan. 31 to a “significant Midland Basin acquisition” for about $420 million.

Based in Houston, Surge Energy currently holds approximately 93,000 net acres in the Permian Basin. The acquisition on Jan. 31, from private equity-backed Grenadier Energy Partners II LLC, will add leasehold interest and producing wells in Howard County, Texas, where Surge Energy’s position in the northern Midland Basin is partly located.

“This acquisition is consistent with our strategy of building a long-term, sustainable oil and gas company,” Surge Energy CEO Linhua Guan said in a statement on Jan. 31. “The combination of both production and high-quality inventory support both near-term cash flow and strong economic returns for years to come.”

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