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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 May 23, 2019 5:12am
248 Views
Post# 29767114

Prespective

Prespective Good morning! I think we all need to step back and look at the situation on oil and how SGY has performed and take a deep breath. Lots of anger going back and forth on this board lately, especially when it comes to politics. A few points below: 1. The Div is not going to be cut unless WTI falls below $55 for a prolonged period of time. In saying that I dont believe we have a raise coming either, unless WTI is over $70 for a prolonged period of time. Its a matter right now if enjoying the 7+% while you wait for the dust to settle. 2. Differentials are expanding a bit, this is a good thing, it means some of the glut in Alberta will be attractive for Crude by rail. Untill piplines are approved/built, we need crude by rail. 3. New provincial government is very supportive towards oil, and the new Federial government as of October will be pushing hard for piplines, Sheer laid out his platform and want piplines in all directions. This is assuming he wins, which I believe is a forgone conclusion. 4. Even with Oil getting hit hard this week on China vs US drama, SGY still gets $66.63/barrel Canadian. Which means SGY is cash flow positive. 5. Sgy is working hard to pay off debt right now which will set us up nicely no matter which way the market goes. With the current curtailment on Alberta SGY expansion is limited so we pay off debt and prepare for the future. Sounds like a good idea to me! All that to say, sit and wait, collet the div until some of the major events are figured out in the world today, Iran vs US, China vs US, OPEC end of June meeting, and possible pipline announcement come June. Have a great day! Kid
Bullboard Posts