Surge Energy Announces 2017 Year End Reserves

Surge Energy Inc. (TSX:SGY) announced an increase in the company’s year-end 2017 net asset value of more than 10 percent per share over 2016, to $6.06 per share. Sproule’s 2017 year end price forecast has 2018 WTI crude oil prices below current average strip pricing for 2018.

Highlights are as follows:

Surge’s focused operating strategy of utilizing growth capital to acquire, exploit and waterflood high quality, large original oil in place (“OOIP¹“), conventional, sandstone reservoirs, continues to provide excellent consistent results, as demonstrated by the following:

• Increased the Company’s 2017 NAV by 11 percent to $6.06 per common share; Sproule’s 2018 crude oil price forecast is below current strip oil pricing for 2018.
• Surge’s Total Proved (“1P”) 2017 NAV has been independently evaluated to be $3.67 per basic share, an increase of 9 percent from 2016.
• Increased Total Proved and Probable (“2P”) reserves by 13 percent, to 95.2 million boe.
• Proved developed producing reserves value increased by 10 percent over 2016, from $553 million to $607 millionon a NPV10 BT basis.
• Added 9.28 MMboe of proved developed producing reserves, replacing over 170 percent of 2017 production (estimated at 5.45 MMboe).
• Delivered an “all-in” FD&A cost of $13.60 per boe2, on a total proved plus probable basis, including changes in undiscounted FDC.
• Reported a 2017 recycle ratio of 1.74 times FD&A3, on a total proved plus probable basis, with oil prices averaging US $50.95 WTI per barrel.
• Only 292 of Surge’s 700 gross internally estimated well inventory has been booked in the 2017 Sproule Report; this conservative booking reflects FDC of 4 years of estimated 2017 funds flow.
• Based on successful results from the Company’s ongoing waterflood activities, incremental waterflood reserve bookings were added in both the Upper Shaunavon and Sparky core areas

Click here to read the full Surge Energy Inc. (TSX:SGY) press release.