Surge Energy Inc (Alberta) T.SGY

Alternate Symbol(s): ZPTAF | T.SGY.DB.B

Energy Oil & Gas E&P

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

Surge Energy Inc (Alberta) > Not a horrible deal

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Comment by downtozeroon Jun 23, 2021 9:22am

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Post# 33433498

RE:RE:RE:RE:RE:Re: Not a horrible deal

When you take SGY's debt into consideration, this is really and excellent deal. With SGY's equity + debt, that's about $1.40 per share. With Astra's equity with virtually no debt, the shares would be valued well over $1.00 per share with the revenue they will be contributing. I expect this will be a big jump in SGY share price once the market figures this out. With current oil prices, that $15M debt with unhedged oil will be paid off before 2022, giving nothing but more FCF.

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