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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 PUNJABIon Mar 12, 2021 10:33am
227 Views
Post# 32784813

Market sentiment.

Market sentiment.It seems that the market sentiment for SGY and the oil sector is improving. Still, the share price of the oil producers is not reflecting the current oil prices and corresponding cash flow.

As the oil prices continue to stay above $60 there will be more interest and inflow of money in the oil sector. A large number of institutional investors are on the sidelines and underweight the oil sector, the money will eventually in oil because of the following reasons

Economies are opening up and the oil demand is going to increase, especially when the airlines start to fly.

OPEC is not going to glut the market. US production has dropped and is not coming back soon.


Trillions of US dollars are being injected into the system that is causing US $ to devalue aginst all commodities. Commodities are entering a suppercylce.


Because of inflation tech stock will take a hit and the rotation will take place into commodities including oil.  Some tech and other growth stocks with poor fundamentals ( burning cash ) have inflated share prices while oil stock with WTI $60 are undervalued. Oil stock valuations will catch up it is a matter of time.




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