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Surge Energy Inc. Announces Corporate Update; Redetermination of Credit Facility; Sparky Technical Update
Surge Energy Inc. Announces Corporate Update; Redetermination of Credit Facility; Sparky T...
About this update from Surge Energy Inc.
[{"type":"text","content":"\n\n\n\nSurge Energy Inc. Announces Corporate Update; Redetermination of Credit Facility; Sparky Technical Update\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prngen2{\nBORDER-TOP:black 0pt; BORDER-RIGHT:black 0pt; VERTICAL-ALIGN: TOP; BORDER-BOTTOM:black 1pt solid; TEXT-ALIGN: LEFT; PADDING-LEFT:0.50em; BORDER-LEFT:black 0pt; PADDING-RIGHT:0.50em\n}\n.prngen3{\nBORDER-TOP:black 0pt; BORDER-RIGHT:black 0pt; VERTICAL-ALIGN: TOP; BORDER-BOTTOM:black 0pt; TEXT-ALIGN: LEFT; PADDING-LEFT:0.50em; BORDER-LEFT:black 0pt; PADDING-RIGHT:0.50em\n}\n.prnbcc{\nBORDER-TOP:0pt solid; BORDER-RIGHT:0pt solid; BORDER-COLLAPSE: COLLAPSE; BORDER-BOTTOM:0pt solid; BORDER-LEFT:0pt solid\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, AB, June 22, 2020\n\n\n\nCALGARY, AB, June 22, 2020 /CNW Telbec/ - Surge Energy Inc. (\"Surge\" or the \"Company\") (TSX: SGY) provides a corporate update, confirmation of a redetermination under the Company's reserves-based credit facility (the \"Credit Facility\"), and a technical update in regards to the Company's Sparky core area.\n\n \n \n \n \n \n \n\n \nCORPORATE UPDATE – MACRO ENVIROMENT FOR OIL IMPROVING\nIn 2019, with US WTI crude oil prices averaging US$57 WTI per bbl, Surge successfully maintained the Company's annual production (cost effectively), paid its prior dividend (using just 17 percent of the Company's adjusted funds flow1), and reduced net debt1 by $79 million (adding significantly to the net asset value and liquidity of the Company). \nIn early 2020, crude oil prices rallied to over US$63 WTI per bbl. Accordingly, pursuant to Surge's strategic hedging program, the Company locked-in a significant portion of its 2020 oil production at these attractive, pre-COVID, price levels.\nIn March and April of 2020, massive crude oil demand destruction from the COVID-19 pandemic, together with increased oil production from OPEC and Russia, contributed to a dramatic decrease in the price of oil. On this basis, Surge's management and Board acted decisively to protect the Company's balance sheet and net asset value (\"NAV\") during this period as...