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.

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Surge Energy Inc (Alberta) > Sgy paid 300 million in dividends over 6 1/2 year period

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Comment by jerichoDeeron Oct 29, 2020 7:14am

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Post# 31801723

RE:RE:Sgy paid 300 million in dividends over 6 1/2 year period

SargeX wrote: Hey S&F

I hate to p*ss on the party but I think they should never have been paying out such a big divy. It's always been the same story with the big BSer Colbourne singing the same song. I think the guy is a total slimeball.

I owned SGY from Nov, 2013 to Apr, 2016 and got torched. I sold at $2.47 which sounded bad at the time but looks rather nice at this point.

It, along with LRE and BTE, cost my wife and I some scratch but it did teach me an important lesson that a retiree living off dividend income should never invest in oil & gas producers for the long term.

I had e-mailed John O'Connell about SGYnad LRE back in Aug, 2014. His response is below. I wish I would have listened to him at the time but as my Dad always said: "Better late than never".

Ciao
Sarge

O'Connell's e-mail from Aug 13, 2014:

I would point out that in both cases the stock is lower today than in the beginning of 2012. Both have massively diluted existing shareholders. As a quick example SGY share count up 133% and debt up 84% with production up only 60% in the past 3 years. A pretty poor trend . One could argue that management changes were made and so it's a new story. I would point out that the Chairman that over saw the massive fall over the 2012- 2013 debacle is now the CEO. It was he who invested money at the MAXIMUM allowable discount provided by the TSX at the bottom of its drop in the spring of 2013. Shareholder friendly?

I have personally spoken with Paul C many times and he is an amazing speaker and deal maker. He has traded the stocks that he is involved with exceptionally well. Perhaps someday shareholders will see growth per share too.

In the end, I only want to point out that many companies are paying you back your capital (taxed) and financing a huge portion of it via share issuance. It is a treadmill that once on is brutally costly to get off. Ask the long suffering shareholders of Penn West. Or anyone who has owned LRE or Surge for any length of time.

I truly wish you the best of luck,
John

soundandfury wrote: Obviously this company has earnings power