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Surge Energy Inc (Alberta) T.SGY

Alternate Symbol(s):  T.SGY.DB.B | ZPTAF

Surge Energy Inc. is a Canada-based oil focused exploration and production company. The Company’s business consists of the exploration, development and production of oil and gas from properties in western Canada. Its operations include Sparky and SE Saskatchewan. Its supporting assets include Valhalla, and Greater Sawn. The Sparky operation offers light/medium crude oil production with compelling returns. The SE Saskatchewan operation maintains asset base oil operating netbacks. It has low-cost wells with short payouts and the potential for continued area consolidation. The Valhalla operation offers a stacked pay multi-zone potential with light oil and provides a range of area infrastructure and access to multiple egress options supports attractive operating netbacks. Its Greater Swan operation consists of concentrated light oil assets with conventional slave point reefs.


TSX:SGY - Post by User

Comment by Kontraryon Nov 14, 2021 4:11pm
123 Views
Post# 34125114

RE:Re: Debt

RE:Re: DebtI would be happier if they would just be an Oil&Gas E&P company and stop making acquisitions. This is what they said they were going to do back in January:

Surge's focus in 2021 continues to be on disciplined capital allocation, with cash flow strategically allocated between capital projects, net bank debt1 repayment, and the Company's substantial abandonment and reclamation program. As a result of Surge's very low 19 percent annual corporate decline, and focusing drilling operations to the top tier production efficiencies associated with the Company's core Sparky play, Surge can grow its production in 2021 while continuing to pay down net bank debt at current prices. 

Note that this does not say: "We plan to take on more debt and significantly dilute shareholder equity by issuing a large number of shares (which are currently trading near their lowest point) which we will then try to mask by doing a reverse 1 for 8.5 split so that we can make two acquisitions that we don't need to make and probably can't exploit because our past record with acquisitions isn't very good.


soundandfury wrote: Especially when there is alternatives to debt........like sell some assets for example.......what is the purpose of holding billions of barrels and 13 years drilling inventory when you owe 320 million in debt? Those assets just sit there and in some cases actually decline in value


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