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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 Chris007on Jun 15, 2021 8:20pm
263 Views
Post# 33393361

RE:RE:SGY should be $2.52?

RE:RE:SGY should be $2.52?Why would they need to do a reverse split? Generally, the most common rationale for doing one is that the company's shares do not meet the minimum price listing requirements for a specific exchange. 

For example, the NYSE requires that a company's stock be atleast $1 to continue trading. OBE, in order to maintain compliance ended doing a 1 for 7 reverse split back in 2019 (though they ended up getting delisted anyways with the covid crash).

BTE faced the same situation, but ended up voluntarily delisting from the NYSE.

SGY only trades on the TSX, which is a lot less stringent about things, so there really is no reason to do a reverse split, based on share price-rationale.

The only other reason why reverse splits are done is when a company has to undergo debt restructuring, where debt swapped for equity, in which case a shitload of new shares are issued. SGY at present, with oil prices where they currently are, is not really in danger of needing to do a debt restructuring (especially after the last asset sale and flow-through share sale)

ariesleaf wrote: Before you see $2.52 you will see a reverse stock split 5 for 1.


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