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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

Comment by Tradestayon Jul 07, 2022 12:47pm
243 Views
Post# 34808749

RE:Every analyst talk about 14$ or more

RE:Every analyst talk about 14$ or more
I don't think 15 is overrated. Just stick to the basics, they are making huge cash slow with their presentation and using less than $100 oil in their forecast. We have see > $100 for quite a while. Once debt is down, the company value upwards with this cash flow and they have less than 90M shares so multiply that by $15 price and you have less than 1.3B valuation. The important thing is where oil price is heading. The data points to upwards, US commerical crude inventory and product inventory ( gasoline, distillate etc are below 5 year average). Now this is after their SPR got a more than 100M barrel drain, for 3xalple today had a crude build of 8M barrel but had close to 4 million draw in product and spr also have a few million draw last week which explains the build. People are scared of interest rates but rates are well below historic level, Canada is still 1.5%. Remeber as well people got billions or trillions from government in 2020 and 2021 so they have cash to observe price increase which lowers recession risk. Additionally look at news in Canada and US airlines traffic are coming back so quickly airlines are canceling flights. This Sector was weighihvbon demand but its coming back, summer driving is here. My thoughts do yoir own DD. GLTA
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