Ccord surfs buys
Surge Energy* (SGY : TSX : $7.59) Net Change: 0.31, % Change: 4.26%, Volume: 7,396,638 THE FAST AND THE FURIOUS. That's the only way we can describe the recent insider buying at Surge Energy. According to reports, Surge kingpin, Paul Colborne, bought an additional 255,450 common shares (both directly and indirectly) at an average price of $7.156 per common share ($1,828,115). Colborne who is Surge's Chairman, President and CEO, has bought nearly $5 million worth of stock through the public market over the last 90 days. Colborne isn't the only insider buying, on Monday, SGY director Murray Douglas Smith bought 121,100 shares in the public market at an average price of $7.22 per common share. Over the past 90 days, a total of five company insiders have reported spending $3.8 million buying company stock in the public market. Last week, Surge announced the closing of the purchase of Longview Oil (LNV). Assuming LNV production levels of 5,700 boe/d (~80% oil; ~15% of which is heavy), SGY is paying $75,250/flowing boe, which is slightly below other recent oil weighted transactions (~$80,000/boe). SGY is paying just $11.41/2P boe of reserves, which is significantly lower than recent transaction levels (~$19.50/boe of reserves). As a result of the highly accretive Longview acquisition, Surge's Board of Directors have now approved an 11% increase in the company's annual dividend from $0.54 per share per year ($0.045 per share per month) to $0.60 per share per year ($0.05 per share per month), effective for Surge's next declared dividend. At yesterday's closing price share yielded 7.11%. #RIPPaulWalker.