Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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
Post by investatbeston Jan 14, 2016 11:08am
277 Views
Post# 24457892

This might comfort some of you here...

This might comfort some of you here...Article from a huge rockstar on Bay/Wallstreet.  Wrote this article not too long ago.  Might be on to something here and SGY might be poised to take advantage of this at some point:

https://business.financialpost.com/investing/trading-desk/loonie-is-just-two-cents-shy-of-1986-trough-when-oil-was-10-a-barrel-time-to-buy-both-says-david-rosenberg

I held (and have re-bought and still hold) this stock since around March of last year.  I sold it in the summer and made a killing on it.  I liked the dividend and how the company was positioned.  The debt was the only thing that really worried me about the company.  Once assets were sold to address the debt, I felt better about the company and do so now given where oil has taken this stock.  Now with the dividend almost gone, it's tough to hold.  At these prices, I am very much looking to average cost down on this stock.  I hold it in an RRSP and I have no need for the cash any time in the near future.  

I see this stock possibly doing a few things:  1)  Management will cut the dividend entirely for the time being until oil returns to a level where they are able to introduce this again.  2)  As oil recovers (and it will, but who knows when), this may position SGY as a takeout candidate trading at these levels.  I could see CPG as a suitor for SGY (if I recall correctly, management has a history with both companies in some capacity).  It may make the most sense for SGY at this point.  Given the drop in oil, I would imagine that a thining of the herd will take place during the oil recovery and really only major players will be left standing.  

Just my two cents, but I think SGY is a steal at these prices and I think management realizes this (with the news of recent insider purchasing).  I wouldn't be throwing $50,000 at something that was going to lose money and those guys know more than we do.  If your risk tolerance is there, this could be a good time to do it. 

GTLYA DYDD
Bullboard Posts