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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 Baystboy07on May 05, 2022 7:07pm
421 Views
Post# 34660525

What I like and don’t like

What I like and don’t like1. Good overall results...net backs up significantly and will get better and rest of crappy hedges are pretty much done..."majority of the Company's mandated fixed price crude oil hedges for 2022 expiring in less than two months"

2. Previously they said net debt target of $250 to $265 million would be achieved before mid year 2022...now they are saying q3 2022...assuming this is because of the land purchase they did eating up cash.

3. dividend is nice...reasonable yield but not stupid high

4. I do not like they did not provide a better outline of the cash return like other do and that they were not specific on institution of an NCIB.

I think it is 50/50 if there is a positive reaction...will really depend on the analysts...if oil prices hold i think there will be much more clarity on further shareholder returns after Q2

GLTA



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