Surge Energy Inc (Alberta) T.SGY

A message from Paul Colborne, President & CEO...

[zack50]

Below, is an outstanding recent write up by Raymond James that covers some of the key points for Surge’s dominant Sparky play:

• The Sparky play in SE Alberta is an 11 Billion bbl OOIP trend (ie. ~ 7 Billion bbls is heavy oil; 4 Billion bbls is medium/light oil);  Surge’s Sparky is a MEDIUM GRAVITY(ave. 26 API) oil play – it’s NOT ‘heavy’ oil.

• Surge now owns and controls > 800 million bbls of OOIP in the medium and light window of the Sparky play.

• Our Sparky play is a low cost, shallow, conventional sandstone (up to 30% porosity).

• SGY has amassed a dominant operational position in the light/medium window of the Sparky trend  –  with very limited competition !!

• Surge has now drilled > 200 good Sparky wells in a row -  growing sequentially from 1,000 boepd (95% medium oil) 8 yrs ago , to > 10,000 boepd today; SGY has > 400 (+10 yr inventory) Sparky drilling loc’s remaining =  VISIBLE , LOW RISK , GROWTH !!

• SGY is now using multi- leg open hole technology with great success in certain (heavier) areas of it’s Sparky play.

• Surge now books (with Sproule) up to 400,000 bbls of reserves for a waterflooded Sparky well that delivers a PIR(Profit to Investment Ratio) of >8 times undiscounted (ie. Surge’s waterflooded Sparky wells give you your money back +/- 8 times over the life of the well !!).

 

As well, Shubham Garg, President & CEO White Tundra Investments highlighted Surge as his top pick on his latest podcast interview. It is available at:

https://www.youtube.com/watch?v=3p4JIBAH5nk.

[Kherson]

The present problem with Surge is the debt. It needs to be under $100 million before Paul can begin to pat himself on the back! Kherson