RE:My thoughts on the deal
at $80 oil this pays out in 3.5 years when considering synergies with existing properties in the location. This also makes surge a prime company for take out with asset consolidation in SE saskatchewan. Also net debt was reduce post Q3 with the redemption on the debentures. 9.20 is a good price given it was there less than 2 weeks ago and the deal would have been made prior to today's market price. Oil is above the $80 mark and mau go higher given SPR release ckjjng to an end, low us production and OPEC cut off setting loss due to recession. Also China set to start relaxing covid policies will help demand. Recession is still possible but past recession had not had major impact to demand, but this time we are going in with record low inventories and countries across the globe has already tapped their SPR with us at record low. Also energy companies are maintaining discipline financials capping production growth ( e.g surge acquired additional barrel but estimating to keeping production flat with small growth wedge, overall the market does not really get more oil). Good luck to all.