In case you didn't listen or hear, this is what Nuttall said* He bought a 9% stake in Surge about 3 weeks ago when there was some private equity shareholders wanting to get out.
* He paid a distressed price... the stock moved between 22 - 24% since that time, so it went from a discount multiple to an average multiple.
* He says he spoke with PC earlier this week... PC tells a good story.
* In a bull market (which oil is in right now), Surge is a stock that is going to work.
* Nuttall has reduced his position since his purchase... he made a 20+ % in a matter of a week or two by taking advantage of the liquidity window.
* Running $100 math, Surge screams (as you would expect), extremely well.
* The upside to Surge is their Sparky play where they are utilizing the same technological tweaks used in the Clearwater zone to t on the fringes and improv the economicsry to improve productivity.
* They are also sitting on a couple of wells that if successful, the upside is that they will take crappy Tier 3 inventory on the fringes and improve the economics of those wells by improving well producivity rate.
* Indicates that he'll watch SGY on a day to day basis... it's on his radar, which it wasn't for some time.
* To date, he has done pretty well in the short term.