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)

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Post by zack50on Jan 18, 2023 10:30am

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Post# 35230482

From Jeremy McCrea Director/Energy Research at Raymond James

Here today, gone tomorrow - seems to be the theme for Oil & Gas names. Despite the number of listed companies down 69% since 2011, consolidation has led to a stronger group of 30 companies over $1 bln in MCAP. Who's next to join the consolidation party?

"With seemingly stronger CDN Oil & Gas companies, the level of interest in 2022 meaningfully jumped to the upside with ‘Value of Trade' increasing 120% to $467 bln in 2022 (vs. avg)"

Much of the increase in CDN Oil & Gas 'Transaction Value' came from a higher # of trades – a 38% increase over the last decade (to 54 mln trades in 2022)

Despite fewer names in the sector, consolidation has brought more interest and more relevance with institutional investors today - with the setup for 2023 looking similar once again.