Globe says Surge Energy kept at "speculative buy"Surge Energy Inc (C:SGY)
Shares Issued 339,784,739
Last Close 3/8/2021 $0.71
Tuesday March 9 2021 - In the News
The Globe and Mail reports in its Tuesday edition that Canaccord Genuity analyst Anthony Petrucci is keeping his call on Surge Energy at "speculative buy." The Globe's David Leeder writes that Mr. Petrucci boosted his share target to $1 from 50 cents. Analysts on average target the shares at 64 cents. Mr. Petrucci says in a note: "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 [barrel], 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." The Globe reported on April 9, 2019, that Industrial Alliance rated Surge Energy "buy." It could then be had for $1.42.