Bullboard - Stock Discussion Forum Surge Energy Inc (Alberta) T.SGY

Alternate Symbol(s): ZPTAF | T.SGY.DB.B

Energy Oil & Gas E&P

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... see more

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Surge Energy Inc (Alberta) > Regarding the non-cash impairment charge of ~59M$

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Post by zack50 on Mar 08, 2024 6:53pm

Regarding the non-cash impairment charge of ~59M$

In SEDAR documents, Surge specified that the impairments affected its assets in northwest Alberta, but did not go into further details.

Based on location, a likely candidate is the asset package that Surge acquired in 2018 through the $320-million cash-and-share takeover of Mount Bastion adding 5,500 barrels a day in the Greater Sawn area.

Anyone here who has been a long-term investor might remember that this was touted as being an exciting opportunity with significant additional upside. We all know what happened... SEDAR filings show that SGY's Greater Sawn production has fallen every year since the takeover and averaged just 2,800 barrels a day in 2023.

The shares issued as payment for Mount Bastion have taken an even nastier tumble. At the time they were worth $2.04 each, but that was before Surge's 1-for-8.5 rollback in 2021. Adjusted for the rollback, the shares have plunged from $17.34 to today's close of $6.44.

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