Surge Energy Inc (Alberta) T.SGY

Alternate Symbol(s): ZPTAF | T.SGY.DB.B

Energy Oil & Gas E&P

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.

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Surge Energy Inc (Alberta) > Cost of Acquision including opportunity cost

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Post by terroiron Jul 27, 2022 7:27pm

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Post# 34855430

Cost of Acquision including opportunity cost

The acquisition last year has a very high unforeseen opportunity cost due to the forced hedges. I don't have the information needed to complete the analysis - but if you factor in the realized losses on the forced hedges over this fiscal ( about $160 million with this quarter anualized) the actual acquisition cost doubles. Hopefully the increased production of 4100 bpd still makes for a good ROI.

Terroir

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