Surge Energy Inc (Alberta) T.SGY

Factor out the 20 million hedge loss

[soundandfury]

And they still not making any money........this means that even with no hedge loss sgy is barely breaking even .......

[pennydredful]

One   will   find  very  few  oil  and  gas  production companies  report    accounting  profits   due    to   high   depletion  and  depreciation charges  ( non cash)   partially caused  by   on  going  exploration  and

[Countrin2tive]

I had a question concerning just that Penny. I am no expert on these statements, but perhaps somebody can comment on whether the return of Impairment charge, directly affects shareholder equity in a very positive way, And if so, would book share price not be on its way up?

[Chris007]

shareholders equity would go up If you look at the line, Deficit, it decreased quarter over quarter by 307,113,000 That being said, its a non-cash event. Just as the write down last year was a non-cash event. Book value in general for oil and gas stocks is a pretty poor indicator of value (due to the constant write downs/reversals)...except in instances where there is a huge discount