Canaccord Genuity’s Anthony Petrucci... target $1“On Friday, Surge provided a positive operational update and announced an asset sale of the company’s working interest in its Nipisi and Provost assets for gross proceeds of $106-million. The assets to be sold include 2,700 boe/d, which equates to $39,250/flowing, which we view as an attractive price to garner for the assets, considering SGY pre deal was trading at just $32,700/flowing. Additionally, the company expects to replace the bulk of the sold production with a $39-million H1/21 drilling program. The net effect is a muted impact to our production and cash flow estimates, and a major boost to the company’s balance sheet. As such, we view the asset sale favourably for Surge, and we believe it positions the company to capitalize on strengthening oil prices.”
increaseto “outperform” from “sector perform” and his target to 90 cents from 75 cents, exceeding the 64-cent average, , while Canaccord Genuity’s Anthony Petrucci doubled his target to $1 with a “speculative buy” rating.“On Friday, Surge provided a positive operational update and announced an asset sale of the company’s working interest in its Nipisi and Provost assets for gross proceeds of $106-million. The assets to be sold include 2,700 boe/d, which equates to $39,250/flowing, which we view as an attractive price to garner for the assets, considering SGY pre deal was trading at just $32,700/flowing. Additionally, the company expects to replace the bulk of the sold production with a $39-million H1/21 drilling program. The net effect is a muted impact to our production and cash flow estimates, and a major boost to the company’s balance sheet. As such, we view the asset sale favourably for Surge, and we believe it positions the company to capitalize on strengthening oil prices,” said Mr. Petrucci.