Surge Energy Inc (Alberta) T.SGY

Keep in Mind

[Countrin2tive]

We are now close to halfway through Q2 with oil prices averaging an excess of $100. This report reflects things as they were a neat a month and a half ago. I am interested in the significance of this land purchase. If it enhances i.e. if there is oil, lots of it underneath... Fine!  For the most part, there was no surprises in Q1, for me the fine print lies with this land purchase.

[masfortuna]

Take a look at the map. Those wells seem to be very productive :)

[Countrin2tive]

If so, with WTI at these prices, I would think a little slippage in the debt repaymemt which some seem to be fussing over, is more than justified in order to grow assets and reserves.  Oil is going to be around at these prices for a while, I think.

[masfortuna]

Exactly. Simple calculation. We can repay debt only for the next 4 years at the previous fcf of 25 million (they were at 390 million) OR increase production and assets which would increase capex and expenditures and repay debt in 2 years (52 million fcf per quarter x8) assuming no other expenses. BTE was hard set on paying down the debt and guess what? They spent 100 million of their fcf expanding

[koolkat]

masfortuna - (5/5/2022 9:58:20 PM) RE:RE:RE:Keep in Mind ...We can repay debt only for the next 4 years at the previous fcf of 25 million (they were at 390 million) OR increase production and assets which would increase capex and expenditures and repay debt in 2 years (52 million fcf per quarter x8) assuming no other expenses. BTE was hard set on paying down the debt and guess what

[Baystboy07]

I did point that out...on for  Company like $SGY it is not...they need to get pay down debt....market has no confidence...that is why they are trading with one of the lowest multiples of any of their peers....if debt comes down and cash comes back the stock will be re rated...we need cash not more land! also when the say "Surge was also successful at a recent, highly competitive

[masfortuna]

What did they pay? What was it worth? Funny that you are assuming they overpaid. If you said "they may have overpaid" then your statement would be acceptable. You are turning an assumption into a fact. AGAIN...