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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

Post by spacegimpon Dec 17, 2020 4:44pm
297 Views
Post# 32130917

I liked and trusted management here

I liked and trusted management here wanting to jump back in to SGY but looking at the debt it sure makes you think twice .  comparing barrel   to barrel  they  have similar level of debt to CPG  but earn  about $10 less per barrel after expenses  ... so really much worse debt situation than CPG which i consider to be  on the dangerous side  if wti  lingers below $50 for a few years . 

SGY just got a bit unlucky with aquisition timing  but    were also     too agressive and   too early 

they are definitely not doomed yet   but i believe they need $60 wti within  a year to right the ship
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