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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 2smart4u2on Feb 06, 2017 8:58pm
302 Views
Post# 25807781

Energy Summary-6th

Energy Summary-6thFrom Stockwatch Business Reporter courtesy carswell  $ Peak IV
No news out so not sure why it was in today's report but here it is.

Alberta- and Saskatchewan-focused Surge Energy Inc. (SGY) lost 10 cents to $2.68 on 2.69 million shares. It is having an unhappy 2017 so far, falling from its Jan. 3 high of $3.45, on no news except its usual monthly dividend announcement. Surge jumped on the juniors-pay-dividends bandwagon in mid-2013 and has held on stubbornly ever since, although the dividend itself has dwindled over the years. It was once as high as 60 cents annually, but is now 7.5 cents annually (or five-eighths of a penny every month), for a yield of 2.8 per cent.

Although Surge has been quiet lately in terms of operational updates, public data indicate that it is nonetheless operating busily in each of its three core areas, where it has spudded or licensed 13 wells since the start of the year. Eight of these wells are targeting the Sparky play in southeast Alberta. According to Surge's website, the southeast Alberta assets are expected to produce 4,300 barrels of oil equivalent a day in 2017, compared with 3,500 at year-end 2016. Surge expects to produce an additional 6,100 barrels a day in 2017 from its other assets in Alberta, in the west-central part of the province, as well as 3,600 barrels a day from its Shaunavon assets in Saskatchewan, for 14,000 barrels a day in total. The company had previously expected to produce just 13,650 barrels a day in 2017, but boosted this target to 14,000 on Dec. 13, citing "excellent" drilling results. It did not touch its budget of $85-million, and boasted that both the budget and the dividend would be more than covered by cash flow. Pleased shareholders sent the stock up toward $3.30 from around $3. Now, however, it has crashed below $2.70, its lowest level since last November. President and CEO Paul Colborne is taking the slump as a buying opportunity. From Thursday to today, he bought 20,000 shares at an average price of $2.78. He now controls 3.97 million of Surge's 225 million shares.

 
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