RE:RE:RE:Lampman, SKWhen Surge sold their Shaunavon assets at the end of May, Surge reduced their exit 2024 production number from 25,000 boe/d down to 24,000 boe/d. Less production but less debt. The $37.4 million they got from this sale went straight to debt repayment.
Surge's 8.5% dividend continues to be well covered by cash flow even at $70 WTI. The extra cash flow generated from these new wells can go towards faster debt repayment and more share buybacks.
These new wells mean that production from Saskatchewan today is right back to where it was before the asset sale. They should be able to exit 2024 at the original 25,000 boe/d or maybe a little higher if their recent drilling success continues.
The table in Surge's Fall 2024 presentation shows just how much better these recent wells in SE Saskatchewam are compared to the wells they have been previously drilling in this area. The dashed line in the graph best represents the wells drilled near Lampman, SK.
https://i.imgur.com/uweTXuZ.png 