Surge Energy Inc (Alberta) T.SGY

Back to Three Rigs

[uwebb429]

Surge has a rig in each of their core areas. One near Lampman, SK and one near Hope Valley, AB.

Savanna Drilling Rig 414 started near Fabyan, AB on October 1st. This new location is a 40 km drive SW of Hope Valley. 

This chart from January compares the well Surge drilled near Lampman, SK to all other wells in Saskatchewan. IP30 production was well ahead of Surge's peers. 

https://i.imgur.com/v1KQ356.png

[uwebb429]

Time for some bar napkin math on Surge's 102/01-03-05-06 W2 Lampman well that is shown in the above chart.  For 60 days it averaged over 500 boe/d. 60 days X 500 boe/d X $75 = $2,250,000 That easily covers the $1.6 million drilling and tie-in cost. During the next six monhts, this same well settled in at a fairly steady 275 boe/d. 180 days X 275 boe/d X $75 = $3,712,500 At the

[tri-stock]

We need institutional money to drive up the stock price. We are still considered small. Hopefully with less debt soon, somebody will see the cash cow this company has become.

[unc12345]

What is preventing this from being a takeover candidate?

[PreludeSH]

Management (Paul Colborne) still thinks they can make this into another large play like he did with Crescent Point.  Unfortunately those days of big acquisitions are no more, and he doesn't like to be the guppy being swallowed by the larger fish. 

[ecolo101]

1 - management wants to have all the perks.... 2 - poison pill to buy it 3 - debt to be absorbed by the taker is too high 4 - all of the above.....and probably more under the table after full due diligence  mgmnt not good in promoting the best actions or the usage of capex vs optimizing cost management  at least the pay monthly but the stock price erosion over time is a big issue. When

[unc12345]

Some great points...can you elaborate on the poison pill?  This would certainly answer the question of why we aren't a buyout target.