In Summary
Rising oil prices have allowed Surge to:
1) Reverse an impairment on its land holdings due to low oil price and return $323,000,000.00 to shareholder equity.
2) Sell 2,700 boe/d of production that earned $106,000,000.00.
That sale of 2,700 boe/d has been replaced with 2,675 boe/d due to drilling more wells in H1.
3) Acquire Fire Sky that will add more than 1,500 boe/d to production.
In addition the Fire Sky Assets are forecast to increase the Company's cash flow from operating activities by $26 million over the next 12 months at US $70 WTI. Surge paid only $58 million.
It added highly concentrated light oil reserves, production, land, and infrastructure in Surge's SE Saskatchewan core area and syergies with the recently added Astra assets.
4) Acquired Astra resulting in successful drilling programs by both Surge and Astra in the first half of 2021, the Company confirms it is on track to meet or exceed previously announced guidance for Surge's 2021 exit production rate of 20,200 boepd. In addition, add to Surges light oil reserves.
5) Surge is now forcasting 2022 production of 22,500 bpd.
6) As a result of rising prices in Q2 Surge was able to report:
Q2 Report:
In millions:
Assets 922.54
Liabilities 670.64
Shareholder Equity 251.90 (up 325.8% over Q1, -74.8)
https://stockhouse.com/companies/financials?symbol=t.sgy