Surge Energy Inc (Alberta) T.SGY

We’re f$cked

[Rockyboy2015]

$59 million dollar impairment. Very material. I guess I will be backing up the truck in the morning and buying at $6.30 a share when the weak hands panic at 9.30am.

[Tothemoon2]

Should be a nothing burger.  Impairment due to lower prices so a non core asset (maybe Valhalla) caused the writedown.  If prices go up this could be reversed in the future or better yet just sell the asset and buy more of your core areas.

[Rockyboy2015]

Surge paid big money for Mt. Bastion now it is non-core. You need $90. Oil for this to make sense.. NW Alberta is a difficult place to get oil out of the ground. I can't exactly remember what Surge paid for Mt. Bastion but they absolutely need to sell it and pay down debt. Bite the bullet Paul and dump your mistake 

[VeritasVern]

$320 million in cash and stocks. Shareholds may chose between cash, shares or both. Not sure what the actual results were as likely mixed between the three options.

[Rockyboy2015]

Thank you. Surge left the property to rot thus the impairment at $75. Oil. They focused most of funds in Sparky which makes sense do to quick turnaround. 

[VeritasVern]

According to SGY news releases, it looks like the deal closed with a combination of $145m cash and 75.4m shares for an implied price of about $2.3/share. However, a look at prices during that time frame shares were trading (adjusted) between $16-20 leading up to the closing of the deal so the imparment is not as large as thought as shares were purchased at multiples higher than the current sp of

[VeritasVern]

I haven't done a deep dive on the financials, but shouldn't they say exactly what the impariment was for?