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Surge Energy Inc (Alberta) T.SGY

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

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

Post by geezer21on Nov 15, 2021 9:06pm
174 Views
Post# 34129876

Payback on Astra and Fire Sky Acquisitions

Payback on Astra and Fire Sky Acquisitions
Payback on aquisition of Astra and Fire Sky (data from announcements)

                 boe/d    net back     $/day                                Cost               

Astra         4,100       $52+       172,200     90% liquids   160 million
Fire Sky    1,500       $42+         78,000     95% liquids     58 million

Combined  5,600      $44.68    250,200                           218 million

Daily Net Back          $250,200
                times                    30

Monthly Net back      $7,506,000

Payback     218,000,000/7,506,000 =  29 months or 1.2 years


The payback will likely be a lot less than 1.2 years as the price of oil has risen since acquistions were made and also the net backs above will likely be higher with synergy savings that should more than offset carrying charges on the 18 million in assumed debt from the acquistions.
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