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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, Greater Sawn and Shaunavon. 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 potential for continued area consolidation. The Valhalla operation is offering stacked pay multi-zone potential with light oil and provides range of area infrastructure and access to multiple egress options supports attractive operating netbacks. The Shaunavon operation is producing low decline, medium gravity crude oil with high operating netbacks. Its Greater Swan operation consists of concentrated light oil asset with conventional slave point reefs.


TSX:SGY - Post by User

Bullboard Posts
Post by Diesel44on May 08, 2020 4:15pm
253 Views
Post# 31005144

Loving the debentures

Loving the debenturesPaying 14-16% interest at today's $40ish deb price.  With 150% capital appreciation in the next couple years (as long as they make it....)

Had a nerve-racking experience with oil & gas debentures before (Twin Butte - went through receivership; ended up bad news for shareholders as expected, but surprisingly even bankruptcy ended up being a win for debenture holders that bought at sub-50's; with total receiver distributions in the 80's - for a company that went bankrupt!).  Surge looks to be in better shape to weather the current storm, and even if they don't, doesn't mean the debentures won't get some/most their value back.

Fully loaded at these prices, but still have some cash waiting to see if they drop to bargain basement (TBE's got to low teens before receivership).  Lows might be in though, Surge management seems more invested/creative than the TBE management.

I get why people might be into the shares instead (if you're seeing better than 150% stock upside - as an Albertan sure hope you're right!); but not sure why people selling debentures at this price?  (but thank you to those that sold me some!)




Bullboard Posts