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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 Khersonon Nov 02, 2022 8:52pm
556 Views
Post# 35068448

Shareholders played for fools!

Shareholders played for fools!I am glad to see that a few posters have responded to my comments. Exactly what they were trying to counter my comments with is anyone's guess, but it is obvious that I need to be clear as to what I was commenting on.
1) The effective date is May 1st, 2022. Now isn't that interesting considering Surge's NR on July 27, 2022.
2) I have said for quite sometime that Surge should not be increasing any dividends until the debt is reduced below $100 million, instead of $200 million as outlined in their "Return of Capital Framework".
3) The silverlining here is that framework is now based upon a much higher overall free cash flow and those promised increased shareholder returns are now farther out into the future. 
4) I find interesting that the BOD has not yet approved the anticipated dividend increase. I for one am actually hoping that they do not approve any increase until the debt is below $200 million. 
5) Finally, Paul did play us for fools, as most shareholders were hoping and believed that increased returns would be sooner than later, which I have said that the balance sheet could not sustain, based on the production numbers before today's announcement.
Overall, I think that Paul did pull a rabbit out of the hat and yes I will continue to hold.
Kherson
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