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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 unc12345on Jan 20, 2022 1:43pm
276 Views
Post# 34338346

Future

FutureI look at things pretty simply and what I see is this.  I have no idea whether oil will stay at these elevated levels, even though signs say they will for a bit.  If we stay here for even 2 quarters, we get to pay down a massive amount of debt given the free cash flow we are making.  Once that happens, the company is back on solid footing and can be a cash flow machine and return that cash flow to investors in the form of dividends, as it did before, but hopefully in a more sustainable way.  Even if oil drops, which it should at some point (maybe?), we will still be in a stable position to operate going forward.

Long time holder here, still well under water, but hoping for some return of cash in my future, and a stock price that steadily climbs.
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