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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 pppon Oct 08, 2021 12:05pm
249 Views
Post# 33989001

They got a good deal from Astra

They got a good deal from Astra

Andrew Greenslade, president and chief executive officer of Astra, stated: "We are very excited about the transaction with Surge. With Surge's high-quality, low-decline, crude oil asset base, their dominant Sparky play and their exciting financial free cash flow torque to rising oil prices, we feel that pro forma Surge/Astra will prove to be one of the best-positioned intermediate crude oil public companies in Canada as the recovery in energy continues. Astra's high-netback, SE Saskatchewan light oil asset base, low debt leverage and its large 10-year drilling inventory nicely complements Surge's existing, low-cost, conventional crude oil assets."

Transaction metrics

 

Purchase price:  $160-million

Annual net operating income:  $58.1-million

Current production:  greater than 4,100 boe per day (87 per cent light oil)

Proven plus probable reserves (a):  16.6 million boe (73 per cent light oil (b))

Proven plus probable RLI (reserve life index):  11 years

Estimated operating netback at $65 (U.S.) WTI (c) (5):  $42 per boe

Liability management rating (LMR):  5.4

Total asset retirement obligation (ARO):  $12.9-million

 

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