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.

TSX:SGY - Post by User

Surge Energy Inc (Alberta)

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Post by Johnnysbackon Apr 19, 2017 1:29pm

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Post# 26138177

TD

TD Investment Conclusion The acquisition was small, but accretive to estimates, and remains within a core focus of the company in the Sparky play. The metrics paid are reasonable given the nature of the asset (low decline medium grade oil in Southeastern Alberta). The potential dividend increase would be positive, and is within the company's stated payout ratio. Our target remains unchanged at $3.75 and we remain BUY rated.

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