Surge Energy Inc. (ticker: SGY) produced on average 15,675 BOEPD in Q4 2017 and exited 2017 with 15,850 BOEPD. For 2018, the company’s production guidance stands at 16,150 BOEPD.
The company reported adjusted funds flow of $32.17 million, or $0.14 per share for Q4 2017. For 2017, the company reported adjusted funds flow of $103.81 million, or $0.45 per share. Total capital expenditures for Q4 and FY2017 were $22.7 and $170.93 million, respectively.
Early in Q1 2018 Surge closed the disposition of a non-core asset. The assets disposed were comprised of approximately 240 BOEPD, and the sale proceeds were $6.8 million. The proceeds from this non-core sale were used to reduce the company’s indebtedness.
2018
Sparky, Valhalla and Shaunavon
In Q4 2017, the company drilled seven gross/net wells in three core areas. Surge reported a 100% success rate for the drilling program.
Sparky
In Q4 2017 Surge drilled three wells in its Sparky core area. The company’s production in this area has now increased by more than 120% over the last 18 months, to over 6,000 BOEPD. Surge also converted two Eyehill Sparky wells to water injection, with four additional injectors planned for 2018.
In Q1 2018 Surge successfully drilled its first horizontal well into the southern portion of the company’s Lloydminster sand oil pool at Lakeview.
The company anticipates drilling 25 net wells in this core operated area in 2018, a pace which provides more than 12 years of drilling inventory, Surge said.
- Valhalla
- In Q4 2017 Surge drilled one net light oil Doig horizontal well and completed two net Doig wells.
- Shaunavon
- In late Q3 and Q4 2017, Surge converted an additional four Upper Shaunavon wells to water injection and the company has now converted a total of nine Upper Shaunavon wells to injection
- The company plans to bring 17 Upper and Lower Shaunavon wells on production in 2018
