Surge Energy Inc (Alberta) T.SGY

Alternate Symbol(s): ZPTAF | T.SGY.DB.B

Energy Oil & Gas E&P

Surge Energy Inc. is a Canada-based oil focused exploration and production (E&P) company. The Company's business consists of the exploration, development and production of oil and gas from properties in Western Canada. It holds focused and operated light and medium gravity crude oil properties in Alberta, Saskatchewan and Manitoba, characterized by large oil in place crude oil reservoirs with low recovery factors. It offers exposure to two of the five conventional oil growth plays in Canada: the Sparky and SE Saskatchewan. It holds a dominant land position and is drilling a mix of horizontal multi-frac and horizontal multi-lateral wells in the Sparky area. Sparky is a large, well established oil producing fairway in Western Canada. SE Saskatchewan is a focused operated asset base with light oil operating netbacks. SE Saskatchewan operates low-cost wells with short payouts and offers potential for continued area consolidation.

TSX:SGY - Post by User

Surge Energy Inc (Alberta)

Bullboard Posts

Post by terroiron Jun 11, 2013 5:00pm

322 Views

Post# 21512334

Pluses and Minuses

Pluses....a 40 cent dividend and excellent production, CF and debt metrics

Minus.....why issue at $5, undercutting current share price, 40 cent premium to get the deal is too much, share price will have to drop, or line me up for the subscription.

Concern...for every buyer a seller. Sounds like a good deal for SGY at $67,000 per flowing barrel at netbacks north of $50....but why sell at those metrics?

Terr

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