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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

Comment by Herfa1on Mar 06, 2021 10:39am
242 Views
Post# 32735968

RE:RE:SGY finally broke out.

RE:RE:SGY finally broke out.I agree with everything that you said. I have been saying all along. They overestimated the price of oil when they bought Bastion. The ex-Bastion owner JAG, wanted out completely, therefore they started to sale their 75 million shares they received and SGY went from 2.75 to 1.25. Then COVID came plunging oil to nothing. Within a week SGY went from1.25 to 0.40$. During 2020 Bank and the market started to worried about Surge and by the fall Surge hit its low of 0.14$. There was a rebound after the bank allowed Surge to survive in December, but it needed a definite increase in the price of oil and a sign of the economy was expected to come back. With that we saw Surge bounced back to 0.50$. Even with those good news, banks probably forced them to sale assets in order to reduce their risk. The market reacted well. With the financial statement of next week, we will know exactly what their total debt were as of December 31. We should be able to estimate their debt level as of March 31 with their 106M$ disposal of assets and should be also able to estimate their future cash-flow with their hedging. It's looks a lot brighter than it was, but I still think it will take a very long time to fully recover because of JAG still owning probably 50M$ Shares that they want to get rid of.
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