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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
Post by felix10on Mar 17, 2016 1:39pm
262 Views
Post# 24670835

ramman

rammanThe TD report says
"Revised guidance is expected following the closing of the dispositions (expected by end-Q1), although it seems plausible that either the dividend, capex, or both get 'reset' to more appropriate levels for the current environment."

But a few lines later, they state "That said, Surge's business strategy has been clear at the outset, with the dividend taking priority, and as such, we believe that the company will exhaust all other options before a cut (including the creative transactions announced yesterday)."

So, TD is saying a dividend cut is likely to be considered, but only as a last resort.


Bullboard Posts