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.

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Surge Energy Inc (Alberta)

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Comment by Poriemonon Sep 25, 2015 11:27am

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Post# 24135376

RE:At current Oil prices in cdn dollars 58$

Unfortunately isn't quite that simple.
Surge tracks Canadian light sweet, which for the first 8 months of 2015 averaged $59.35 CAD, compared to WTI which for the first months of 2015 averaged about $64.62 CAD. There's a discount applied against Canadian oil (larger transportation costs, etc by shippers, as well as stigma).

The estimates for that discount against Canadian oil appears to stay around that $5 range for the rest of 2015, so instead of the $58/bbl CAD we're onyl seeing about $53/bbl.

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