RE: SGY in shorting/blocking? and book value is $5.14; and stock price is $3.90 to $4.0.
Is there any reason not to buy SGY?
FROM THE NEWS:
1) Surge achieved 27 percent growth in reserves per share and forecasts (based on unaudited estimates), 21 percent growth in production per share (basic) and a 31 percent increase in cash flow per share (basic) despite lower realized field prices due to an $8.56 per barrel increase in oil differentials in 2012 from 2011.
2) Surge's 2012 estimated average production of approximately 8,900 boe per day represents a 49 percent increase compared to average 2011 production of 5,960 boe per day and a 21 percent increase on a per share basis.
3)
- Surge's Net Asset Value (NAV) is estimated at $8.21 per basic share based on Net Present Value discounted at 10 percent Before Tax ("NPV10 BT") Proved plus Probable (2P) reserves at December 31, 2012 .
- Surge's Net Asset Value (NAV) is estimated at $5.29 per basic share based on NPV10 BT Proved (1P) reserves at December 31, 2012 .
- Increased Proved plus Probable reserves by 43 percent to 46.1 million boe over December 31, 2011 reserves of 32.2 million boe.
- Increased Proved plus Probable Reserves per share by 29 percent (fully diluted).
- Increased Proved plus Probable Oil and NGLs reserves by 66 percent to 31.9 million barrels over December 31, 2011 reserves of 19.2 million barrels.
- Oil and NGLs made up 69 percent of the Company's total Proved plus Probable reserves.
- Achieved Proved plus Probable finding and development ("F&D") costs of $23.70 per boe, including the change in FDC.
- Achieved Proved plus Probable FD&A costs of $23.32 per boe, including the change in FDC.
- Proved plus Probable FDC of $257 million represents less than 2.4 times 2013 forecast average funds flow3.
- Achieved a corporate recycle ratio of 1.5 with F&D costs of $23.70 per boe, including the change in FDC and based on Surge's estimated 2012 netback of $34.67 per boe4.
- Surge achieved Proved plus Probable recycle ratios of 2.8, 2.6 and 2.2 at Valhalla, Silver Area and Nipisi, respectively5.
- Approximately 82 percent of the Proved plus Probable reserves value (NPV10 BT) comes from Surge's three core areas of Valhalla, Silver Area and Nipisi.
4) Increased Net Present Value NPV10 BT of Proved plus Probable reserves by 25 percent to $732 million compared to $588 million as at December 31 , 2011.
5) Achieved a Proved plus Probable Reserve Life Index ("RLI") of 14.0 years based on the Company's 2012 fourth quarter average production rate of approximately 9,050 boe per day.
6) Achieved a Proved plus Probable reserves replacement ratio of 5.3 based on the Company's estimated 2012 average production for the year of 8,900 boe per day.