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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 Farmer12on Jun 17, 2019 5:01pm
177 Views
Post# 29833263

Sustainability

SustainabilityAt $55 WTI payout estimated by SGY was 97% and excess cash $5 million. This quarter should be very slightly excess cash positive, with the higher prices in April and May, even with the nasty oil price now. Maybe someone can correct me if I'm wrong. So, SGY should be able to cover capital expenditures and the huge dividend, without adding to debt. This quarter won't sink the boat but oil prices in the 40's for several quarters would probably be unsustainable without serious cutting of capital and dividends. Re earlier posts about media bias. I agree with those who believe we should get our news from a variety of sources and avoid demonization of those who don't think as we do.
Bullboard Posts