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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 soundandfuryon Nov 11, 2022 11:22am
423 Views
Post# 35091506

Lets see did not sgy sell 4,000 bpd to tve

Lets see did not sgy sell 4,000 bpd to tveBack in 2021 for $100 million.............if memory serves me correctly it was waterflooded right in the heart of sparky.........so now sgy is buying 3800 bpd for $225 million which includes $80 in sgy shares..................now call me thick but this seems like current shareholders are paying $125 million for something sgy had .........so why can they not grow production by drilling? Why are they always buying assets and never achieving much in the way of production growth..........i think the answer is clear........their wells cannot keep up .......their decline rate is to high.......and possibly their cap ex budget is still to low to allow for big dividends........same old sgy
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