Surge Energy: This Small-Cap Oil Producer Is Positioned To Surge With Crude Prices
Spy Hill Research • 10 Comments
Spy Hill Research • 10 Comments
Dec. 8, 2014, 4:55 PM
- Canada's S&P/TSX Composite Index suffered its biggest one-day loss in more than three years, plummeting as much as 462 points before settling for a 350-point beat-down, as resource stocks took a deep dive amid weakening crude oil prices.
- Purpose Investments' Som Seif says the selloff suggests investors are growing even more worried about how the resource heavy-Canadian economy will fare in light of the collapse in oil prices: "We still have lower to go for oil, and so there is the potential for energy stocks to see an even further decline from these levels.”
- Among today's worst performers: Lightstream Resources (OTCPK:LSTMF) -19%, Surge Energy (OTCPK:ZPTAF) -14.2%, MEG Energy (OTCPK:MEGEF) -14.1%, Crew Energy (OTCPK:CWEGF) -12.3%, Pacific Rubiales Energy (OTCPK:PEGFF) -11.2%.
- ETFs: EWC, FCAN, QCAN
Apr. 1, 2014, 9:46 AM
- Surge Energy (ZPTAF) agrees to acquire Longview Oil (LGVWF) in a share exchange that values Longview shares at C$5.99 each.
- Surge is offering 0.975 of a share for each Longview share in the friendly deal, which the companies value at ~C$429M.
- Surge says the proposed transaction is accretive on all metrics, and adds concentrated reserves, production, land and operations that are contiguous with its existing core areas.
Mar. 3, 2014, 11:59 AM
- "War in the Ukraine? Buy Canadian small-cap oils," BCMI newsletter editor Chris Damas asserts, believing they could benefit from the sort of spike in oil prices that's happening today.
- Specifically, Damas advises investors to take a look at Longview Oil (LGVWF -1.5%), Surge Energy (ZPTAF -1%) and Crew Energy (CWEGF +3.2%); he says they're inexpensive relative to current commodity prices and should do particularly well as geopolitical risks cause oil prices to remain elevated or spike higher.
Feb. 28, 2014, 3:54 PM
- Surge Energy (ZPTAF +3.2%) says it has acquired ownership and control of 19.8% of Longview Oil (LGVWF +5.8%) from Advantage Oil & Gas (AAV +2.7%)at $4.45/share.
- Surge intends to obtain a "large, strategic equity position" in Longview, at a competitive cost base, and to pursue a mutually beneficial business combination with Longview.
- Surge says it has completed significant due diligence in relation to Longview assets, also initiating extensive, detailed financial modelling of a possible business combination between the companies.
Feb. 24, 2014, 2:41 PM
- Longview Oil (LGVWF +0.9%) says President/CEO Kelly Draper died suddenly while cross-country skiing in Alberta this weekend.
- Chairman Steven Sharpe has been appointed as interim CEO until a suitable successor is appointed.
- Longview said last week that talks with a party that had made a hostile takeover offer for the company had ended.
Feb. 11, 2014, 11:44 AM
- Longview Oil (LGVWF +3.4%) says the unidentified party that has made a non-binding offer to buy it has submitted a separate proposal to acquire 9.3M Longview shares being sold in Advantage Oil & Gas' (AAV +2.6%) secondary offering; the shares represent a ~19.8% stake.
- Last week, AAV announced plans to sell its entire stake in Longview, which consists of 21.15M shares.
Feb. 10, 2014, 10:29 AM
- Longview Oil (LGVWF +10.2%) says it is reviewing an unsolicited, non-binding takeover offer from an unidentified public company.
- Longview provides few details except that the prospective bidder would pay for the deal with its own shares.
- The company adopts a shareholder rights plan as a defensive move to provide its board with time to evaluate the offer and alternatives.
Jan. 15, 2014, 3:39 PM
- Surge Energy (ZPTAF), which already has announced five acquisitions since June, is seeking more deals this year to expand its holdings in the southeast Saskatchewan portion of the Williston Basin, CEO Paul Colborne says.
- Surge is interested in some oil properties held by Penn West Petroleum (PWE), Colborne says; PWE is targeting as much as C$2B in asset sales, it said in November.
- Surge said on Jan. 13 it will raise its annual dividend to $0.54/share, and Colborne says it is poised to keep boosting its dividend along with output in 2014.
Jun. 11, 2013, 5:01 PM