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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 powermanon May 12, 2015 9:00pm
406 Views
Post# 23721963

RE:What a great Q1 Report

RE:What a great Q1 ReportI had to read it over and over. Still can't believe they missed this for all these years. Upper Shaunavon is 12 miles long by 7 miles wide with a 6 meters pay zone. My favourite part posted below. DF

The Upper Shaunavon play has risked, "all-in", drilling and on-stream production efficiencies of less than $15,000 per flowing boepd. At current oil prices, Surge's Upper Shaunavon wells pay out in less than 13 months, and generate a risked rate of return of over 80 percent. These results provide some of the best all-in production efficiencies and rates of return of any crude oil play in Canada.

Netbacks are very high at Shaunavon due to low operating costs of less than $9 per barrel, and low royalties. Another significant factor as to why the Shaunavon play has such high rates of return is that Surge controls a 10,000 boepd oil battery (and associated gathering and waterflood systems), owns 54 sections of contiguous land, and possesses a large 3-D seismic program over the Company's lands.



Bullboard Posts