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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 gopatson Dec 19, 2014 8:06pm
360 Views
Post# 23251672

RE:RE:RE:RE:RE:Dividend cut inevitable

RE:RE:RE:RE:RE:Dividend cut inevitableThe fact that Paul does not collect a paycheck has no bearing on whether he will or will not cut the dividend.  Do you really think a multimillionaire like Paul gives a #%#% about a monthly salary?  What he cares about is creating long term value.  If a dividend cut is necessary then he would take this step.  He has more than 2.8 million shares of Surge.  He will not risk this investment by paying a dividend when it is not sustainable.  The beauty of Surge is the CEOs interests are nicely alligned with my own interests and he is highly respected in the oil and gas investment circles.  I am very confident this management team will be able to execute in this environment.  I don't see a fall in share price if a dividend cut is coming.  Most stocks I've followed have actually rallied after such an anouncement in the last few weeks.  The market needs reasurrance that companies have looked hard at their financial position and can weather this market turmoil.

One thing I don't see thrown around here that I think is a likely event going forward is Surge aquiring more assets.  I know most think this would be a bad idea given Surge's stock price deterioration but I don't agree. If Paul can aquire assets at fire sale prices that are accreditive to Surge than I think he will do so.  He is an opportunist and I can see him taking advantage of the cash crunch many companies are facing right now to aquire assets far below their true value.  I have noticed he's been absent from repurchases of late.  I'm guessing a deal is in the works and he is blocked from trading for now.  We'll see in the coming weeks what takes place.  Other options of course are a sale of SGY (unlikely IMO but you never know) or just waiting until they give their update in Jan before Paul begins to buy more shares at these depressed prices.
Merry Christmas everyone,
God bless :)
Bullboard Posts