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CALGARY, AB – Surge Energy Inc. (“Surge” or the “Company”) ( TSX: SGY ) is pleased to announce its successful 32 well 1H/21 drilling program, a strategic $106 million asset sale (the “Sale”), and a positive re-determination of its first lien and second lien credit facilities. SURGE ENERGY – VALUE CREATION AND DEBT REDUCTION Very Positive Macro Environment for Canadian Crude Oil 2020 was an extremely difficult year for the Canadian oil and gas industry managing through the COVID crisis, and the Saudi-Russia oil price war, which sent oil prices plunging from a high of over US$63 WTI per barrel in January, 2020 to a low of US$11.57 WTI per barrel in April, 2020. Consequently, Surge Management spent much of 2020 working hard to both protect stakeholder’s capital, and to position Surge to be a top performer when crude oil prices recovered. However, in just the last 4 months, oil prices have rallied by over 85%, from a low of US$33.64 per barrel on November 3, 2020 to over US$63 WTI per barrel today. Furthermore, WCS differentials have traded significantly below the long-term average of approximately US$17 per barrel, to less than US$12 per barrel today. Light oil differentials […]
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