RE:Strathcona resources buying surge?halkirkbob wrote: About a month ago I heard rumour of this and then it disappeared, but now has come to surface again. Anyone else hear anything?
The Strathcona rumour has been around actually longer than that and more importantly for me, I have been buying Surge with that possible outcome in mind!
What is interesting with Strathcona is that they were instrumental in the bankruptcies of the two companies that they eventually took over. Since the summer, Strathcona has been beefing up their financial firepower. Please reference their June and July news releases.
Having said that, acquiring Surge would now fit nicely into the Strathcona fold as their June 11th NR so eloquently outlines below and will push them over the magical threshold of 100,000 Boe/d!
Strathcona will have ~80,000 Boe / d (75% oil and liquids) of production, 1.7 BnBoe of proved-plus-probable (2P) reserves, and a ~60-year reserve life index. As measured by 2P reserves, Strathcona is the largest private-equity owned oil producer in North America and the 6th largest oil-weighted company in Canada. Strathcona is comprised of long-life, low-decline, high free cash flow oil assets that are naturally hedged with natural gas and condensate production, across three core operating areas: (1) Cold Lake thermal oil; (2) Montney condensate-rich gas; and
(3) Saskatchewan enhanced oil recovery. Strathcona has an industry-leading full-cycle WTI breakeven of ~US$35/Bbl, a ~10% base oil decline rate, and a large infrastructure footprint that provides optionality to grow production organically.