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Surge Energy Inc (Alberta) T.SGY

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

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

Bullboard Posts
Comment by Kings_kidon Mar 02, 2014 5:43pm
262 Views
Post# 22270353

RE:RE:LNV

RE:RE:LNVBorne2run,

So let’s say SGY does offer LNV a 1.1 - 1.2 for each 1 of their shares. You saying that SGY should offer $6.49 - $7.08 for every LNV share. LNV closed up nicely on Friday at a price of $5.38, so using the price for each stock that they closed on Friday you believe SGY should pay between a 21% and a 32% premium for the each outstanding LNV share? Don't get me wrong I understand why you would like to get as much bang for your buck as possible, however if that does happen you will see SGY shares fall as they will have overpaid for LNV. As a SGY shareholder I don't want to see that happen. I still believe the 1:1 exchange is best for both parties involved and the future of the combine business.

So let’s take your worst case scenario that SGY puts in a bid at about $6.00/share and another company comes in and ups the bid to $7.00/share. To me in that situation everyone still wins! SGY makes a 57% return on the 20% of LNV that they currently own. I'm sure they would be more than happy to take that considering it would only be months after spending the money. I'm not saying this is what I would like to see happen, however if SGY can't buy LNV for the right price then it is still a nice little profit for them. It's because of this I do feel SGY is in the driver’s seat at this point. I really don't believe there is another company out there looking to buy LNV.

Just my two cents!

Kid

Bullboard Posts