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)

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Comment by Nawaralsaadion Jun 11, 2013 11:34pm

338 Views

Post# 21514106

RE: $7.00 share price target & 6% yield ?

According to CIBC the average dividend yield for a Canadian E&P is 7.3%, this would be $5.5 per share for SGY, however the intermediate group (10K+ bpd) the average is 6% or $6.7 per share for SGY.

SGY has excellent management and good growth potential, thus room to grow the dividend over time; hence I believe it will trade at a low yield (high stock price).

Regards,

Nawar

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