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) > The SGY advantage.

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Comment by unc12345on Jan 12, 2023 4:22pm

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Post# 35219570

RE:RE:The SGY advantage.

uwebb429 wrote:
Tradestay wrote: I know some here did not like the recent share dilution but I was ok, we are still under 100M shares and have more production that is super accretive to cash flow.

The SGY advantage is this low share count, when they hit that debt target which is by Q3 this year, they can quickly move the dial on the share and put a bottom in for shareholder, but honestly if oil keeps above $75 this will go up without that.

Here is the SGY advantage that got me excited.

https://youtu.be/WD9MPjalF5A?t=1010

If you only have 2 minutes, that link will take you directly to the 16:50 minute mark of Surge's recent presentation. Listen until the 18:30 mark and let that information sink in.

Surge is sitting on a mountain of light or medium oil that can be easily recovered at low cost with very little risk. The horizontal drilling and water flood technology to recover a higher percentage of oil from these pools is already avaiable and is being successfully used throughout Alberta today. No fracking required.

A single 1% increase in oil recovery can add a billion dollars of shareholder value (+$10 per share). That is based on WTI pricing that is far below what Surge is getting for their oil today.

The land they acquired in SE Saskatchewan allows them to drill and tie in new wells in under two weeks. Drilling costs are fully recovered within eight weeks after that. SGY significantly under paid for what they are already getting out of their new assets. Any share dilution has been money well spent.