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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 Momo25on Nov 14, 2024 1:03pm
130 Views
Post# 36313078

Take over

Take overSGY is not a good target for a take over. It is too small for a big company because it cannot help to achieve a significant effect on revenue or gross margin. I don't think it's an interesting target for a mid size company too. SGY could be a good target for a same size size company. However, there are more interesting candidates with same profile and less debt. Hence a take over is a big speculation.
What will save SGY is a good and sustainable oil and gas pricing so they can reduce debt and buyback stocks to allow for a better Dividend. That could attract more investors. Having said that, I rdo believe that oil and gas price will improve over time, which help SGY to better achieve the debt reduction and a progressive increase of dividend.
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