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) > Next debt target

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Comment by PreludeSHon Sep 05, 2023 12:07am

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Post# 35619291

RE:RE:Next debt target

Based on the recent CPG sale at $37,500 per flowing barrel, and assuming Surge can get the same amount per flowing barrel, them I estimate Shanavon is worth about $43M. Ofcourse that value assumes the CPG property is the same quality as Shanavon. I'd take a 20% haircut to be conservative, so lets guestimate Shanavon is about $34M.