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2021 BUDGET – CONTINUED FOCUS ON SUSTAINABILITY Surge’s focus in 2021 continues to be on disciplined capital allocation, with cash flow strategically allocated between capital projects, net bank debt 1 repayment, and the Company’s substantial abandonment and reclamation program. As a result of Surge’s very low 19 percent annual corporate decline, and focusing drilling operations to the top tier production efficiencies associated with the Company’s core Sparky play, Surge can grow its production in 2021 while continuing to pay down net bank debt at current prices. In 2021, the Company is budgeting to spend $55 million of exploration and development capital (including corporate overhead charges), which includes bringing on production 32 gross (32 net), wells of which 9 gross (9 net) wells were rig released in late Q4/20. The 2021 capital budget is primarily focused on Surge’s Sparky core area. Additionally, Surge intends to drill a well at Valhalla, offsetting the Company’s prolific Montney well that came on production in late 2019, which has produced over 200,000 barrels of oil to date. This medium/light oil focused drilling program is fully funded by cash flow, increases Surge’s production by six percent, from 17,000 boepd exit 2020 to 18,000 boepd on […]
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