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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 geezer21on Nov 14, 2021 9:36am
302 Views
Post# 34124472

Debt

Debt
There is good debt and bad debt.  So long as the debt is earning more then the interest on the debt it is good debt. Even better if it is allowing growth in profits.

With out debt from shareholders, institutional investors, and banks all the oil would stay in the ground.

When a company is in a position to carry on business and keep growing without the bank debt than the interest will cease to come off the bottom line.

However, bank debt can enable a company to continue expanding and increasing profits that more than justifies the debt especially in a commodity bull cycle like the one oil companies are in now.

Surge is doing exactly that.



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