Just so s/h realize......What you've gotten yourselves into and what you NEED to REALLY understand. First & foremost, and this is an easy one for you without any magic or tricks from people like me telling you how it is. Look at the stock price. Do you really think that if everything was OK, this would be trading at ALLTIME lows while most have recovered? Secondly, this is moslty an oil producer. Apart from the obvious fact the WTI oil is trading at ~$40 and will be stuck there for quite someytime and that 99% of Canadian ep's need at the very MINIMUM $50+. Juniors like Surge probably even more. I would invite folks to actually do some research on what Canadian oil producers actually get for their oil and it aint WTI pricing.
Now for the big elephant in the room, their debt issues......yes ISSUES not issue. Apart from the FACT that they have ~$325M in long term bank debt AND ~$70M in notes, they do have ANOTHER hidden liability not many are probably aware of. And this will be the difference of whether Surge s/h get something or nothing. So what is it? Their decommissioning liabilties are HUGE and cannot be discounted here. They're probably 2X or 3X what is normal and what other bigger operators have. AT ~$275M in decomm, you can bet your silly a$$ that any competent acquiring company is gonna notice and factor that into their assessment. So if you add all that up folks, that's an eye popping ~$700M in total debt. Plus those notes come due in a few months, which they CANT payoff and need to refinance.
ANY intelligent investor looking at this, understands where the company stands and they know this is a VERY RISKY investment which could turn sour quickly AND unexpectedly. The company is basiscally insolvent because their credit line is maxed out at around $335M i believe and will not be extended much more than that. On the buyout option and possibly salvaging the invesment that way, you need to understand that at $700M in debt, the company would need at least an acquiring company to pay them 22k per flowing barrel (if ALL the decomm liabilties can be deferred to the Gov't) or 30k+ if they can't. Good luck with that. If ypou look at the Whitecap/Nal deal, Whitecap paid $155M for about 25k boepd and 70M 2P reserves. Surge has ~21k boepd and about 120M of 2P. Do the numbers folks.
Look at this way, if you were looking to buy a home and found one not only you liked but seems like a good deal. But in having the home inspected, you also found you needed to put an extra 40% to fix structural problems like foundation & roofing. Would you give the seller a break or would you include those facts in your assessment and lower your offer based on that? I think i know the answer.....
Before anyone bashes me here, i'm not here under ANY devious scheme to steal your shares from what you beleive is a conspiracy to undermine the company. Far from it, i've got better things to do with my time than waste on that.....I'll leave that task to famous academics like Dr. Kherson. Phd. I'm just here to warn you that from a vast knowledge & experience that this investment MIGHT be soon coming to an end. That's it, just to save folks their money and their invesment. Just as i tried on the BonaV BB before it fell to its doom. It's your CHOICE who you wish to believe. Folks like me who lay out the facts or guys like Kherson & Expro who come in with all the bells & whistles, charts & figures trying to convince you to stay (even buy) but will leave just as quickly after this goes up a few pennies. YOUR CHOICE.
Good luck to all...