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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 May 06, 2023 6:54am
456 Views
Post# 35434399

Sparky payouts?

Sparky payouts? Maybe the paid pumpers on this SH board can tell us how long it now takes for a new well drilled on the Sparky asset to payout? As can be clearly seen from the actual Surge NR, WCS was only $69.46 Can. a barrel for Q1!
On slide 13 of the new Corporate Presentation, the payout looks to be around 15 months, based upon $75 WTI. 

But in the advisory section under drilling inventory of the NR, Surge references the following payouts, which actually have no relevance to the present price of WTI!

The average production profile from the initial 2023, 10 net SPKY well program was 127 bbl/d vs Surge's internal average Sparky type curve profile of 107 bbl/d (IP30) and 120 mboe (108 mbbl Oil + 3 mbbl NGL's) Estimated Ultimate Recoverable reserves per well, has a payout of 9 months @ US$80/bbl WTI (C$88/bbl WCS). 

Kherson
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