Post by
red2000 on Jun 08, 2022 8:53pm
Non-core property divestiture
Interesting !!!
https://boereport.com/2022/06/07/surge-energy-inc-non-core-property-divestiture/
The Sproule Report is effective December 31, 2021 using Sproule’s December 31, 2021 forecast pricing. Sproule estimates that, as of December 31, 2021, the Properties contained remaining proved plus probable reserves of 8.7 Bcf of natural gas and 2.8 million barrels of oil and natural gas liquids (4.3 million boe), with an estimated net present value of $48.1 million using forecast pricing at a 10% discount.
May use the cash for more CAPEX or made a new acquisition !!?
Any suggestions !!?
Comment by
Baystboy07 on Jun 09, 2022 6:58am
If Management has read the room they will return the money to shareholder via debt pay down or an NCIB...no more drilling and acquisitions until debt way down and buybacks starting!!! shareholders have suffered long enough with a stock price still below multi year highs compared to others. GLTA
Comment by
Binkie on Jun 09, 2022 8:28am
The float is quite low so buying back shares would have an impact but so would be increasing the dividend yield to best in class. If they want to attract more institutional and retail investors then they need to stand out from the crowd in a sector that is red hot and adrift with excellent investment options. However, I suspect they will seek an aquistion in the core area.