Solidifying Balance Sheet, foundation for growth
(1) Surge now is putting a new bottom on share price with this flow through deal, its really up from the low .30s. They did had a loss but its a hedge loss not because they can't turn FCF at these prices. From a Risk Management point of view, given their position before the assets sale the hedges were the right decision. (3) they now see future higher oil price and they are tapping the equity market to increase production. (4) don't forget they have a huge program for well clean up which will impact long term balance sheet debts and all the grant money they receiving as well. Lastly have patience in the last 6 months this company did alot to shore up balance sheet and protect shareholders. A large infusion of new financing, well clean up program and the fundamentals are in favor with WTI now over 63. My options and not financial advice.