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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 Rainydayon Oct 04, 2021 4:32pm
183 Views
Post# 33962261

One additional thought

One additional thoughtIf Surge generates free cashflow (operating cashflow minus E&D expenditures) of $140 million (or more) in 2022, as per their press release, I really hope they use it to pay down debt rather than reinstate dividends. A slight rerating of the stock from strengthening their balance sheet and not being constantly under the gun to hedge their production would be way better for shareholders than a few pennies per share in dividends. I do like dividends but I really love capital appreciation!
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