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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 Kings_kidon Jan 11, 2018 5:01am
252 Views
Post# 27331382

Thoughts

ThoughtsSome interesting theories brought up:

1. That surge is being taken out by private equity.   I have seen stocks trade the way SGY has prior to a take out.  I actually remember when SGY accumulated shares in LNV prior to taking it out, while SGY was accumulating the share price in LNV did go down until the announcement was made.  So this is possible reaoning for the recent price action, although i’m Seeing no other signs that SGY is being taken out so I think the chances are slim.  Impressive call if you are right though Soundandfury.

2. Odd Wednesday trading:  Very possible, have not noticed in the past but I will certainly keep an eye on this moving forward.  

3. Hedged too early:  Unless they hedged a huge chunk in Q4 I don’t think this is the case SGY has hedged on a sliding scale so will bennifit on it’s hedged oil with this price increase in oil.  As well SGY has hedged currency as well, which with the US dollar falling recently, this will be a solid beenift currently and going forward.  

4. All mid cap oil not reacting to the increase in oil as they are out of favour.  Possible and I have seen this as well.  I watch CPG daily as well, and I realize this is not a mid cap stock, it typically trades very similar to SGY, however recently this trend has broken with CPG gaining in leaps and bounds and SGY stuck in the mud.

No matter what is going on, at this point SGY is making money and the shares are not reacting.  I believe we will get paid at some point but for now we may have to be content collecting our divendeds.

I would like to see some sorer of news from the company, just so we know management is still moving forward, hopefully in the next couple of weeks.  

Good luck to all!  Long and stong!

kid
Bullboard Posts