RE:2.85 aeco & $55 us per barrel Might explain surge pricing courtesy Alain1601 from IV Group oil Discussion Board
Good point.
SGY are now trucking a significant portion of their Eyehill Sparky crude and blending it into light oil streams to maximize their sales price for that crude. They are able to blend a significant percentage of the Sparky crude at several different light sweet and light sour delivery points nearby in both SE Alberta and SW Saskatchewan.
Approximately two thirds (67 %) of Surge's crude oil production is benchmarked to Western Canadian Select (WCS) and the remainder to Mixed Sweet Blend (MSW - often referenced on crude price reports as Edmonton Par Crude).
The average price ($USD) per barrel that Surge gets today would be ~$46 USD ($58 CAD ?), based on the much wider January WCS differentials. Using a historic 3 year average WCS differential, Surge would realize an average price of ~$54 USD per barrel today.
Based on their 2017 numbers, I am not concerned about their capability to deliver what they put forward.