A message from Paul Colborne, President & CEO... Below, is an outstanding recent write up by Raymond James that covers some of the key points for Surge’s dominant Sparky play:
- The Sparky play in SE Alberta is an 11 Billion bbl OOIP trend (ie. ~ 7 Billion bbls is heavy oil; 4 Billion bbls is medium/light oil); Surge’s Sparky is a MEDIUM GRAVITY(ave. 26 API) oil play – it’s NOT ‘heavy’ oil.
- Surge now owns and controls > 800 million bbls of OOIP in the medium and light window of the Sparky play.
- Our Sparky play is a low cost, shallow, conventional sandstone (up to 30% porosity).
- SGY has amassed a dominant operational position in the light/medium window of the Sparky trend – with very limited competition !!
- Surge has now drilled > 200 good Sparky wells in a row - growing sequentially from 1,000 boepd (95% medium oil) 8 yrs ago , to > 10,000 boepd today; SGY has > 400 (+10 yr inventory) Sparky drilling loc’s remaining = VISIBLE , LOW RISK , GROWTH !!
- SGY is now using multi- leg open hole technology with great success in certain (heavier) areas of it’s Sparky play.
- Surge now books (with Sproule) up to 400,000 bbls of reserves for a waterflooded Sparky well that delivers a PIR(Profit to Investment Ratio) of >8 times undiscounted (ie. Surge’s waterflooded Sparky wells give you your money back +/- 8 times over the life of the well !!).
As well, Shubham Garg, President & CEO White Tundra Investments highlighted Surge as his top pick on his latest podcast interview. It is available at:
https://www.youtube.com/watch?v=3p4JIBAH5nk.