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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 jerrybeon Apr 24, 2016 11:09am
293 Views
Post# 24803764

RE:RE:RE:I bet SGY gets bought out

RE:RE:RE:I bet SGY gets bought outCPG would be the obvious candidate. They could issue a few more shares and eat it up for breakfast with a 50% premium...yes, PC and co bought a lot at much higher prices so they would resist anything below NAV (at about $4.4 or so according to latest reserve report). So yes, I guess they would have to offer a very big premium to make the deal happen...that being said, given the complementarity of the assets (Upper Shaunavon is basically divided between the two firms), it would make a lot of sense to make some of a deal.

Ultimately, this is one of the lowest risk proposition in the space. It is a core holding of mine and I see no reason to sell any time soon. If anything, I would add massively were we to test the $2 threshold again. This stock will be much higher as oil recovers. Right now, AECO prices being so depressed is hurting a lot of firms in the Canadian space, Surge included. 

Long and strong...and I would agree to a 50% premium...even though I hope for a much larger return over the long run...
Bullboard Posts