CALGARY, Nov. 15, 2018 /CNW/ - Surge Energy Inc. ("Surge"
or the "Company") (TSX: SGY) confirms that a cash dividend to be
paid on December 17, 2018 in respect
of November 2018 production, for the
shareholders of record on November 30,
2018 will be $0.008333 per
share.
The Company had previously announced that it anticipated
increasing its dividend by 25% (from $0.10 per share annually to $0.125 per share annually) following the
completion of the Company's $320
million, accretive, light oil acquisition of Mount Bastion
Oil & Gas Corp., which closed on October
25, 2018. However, during the extremely volatile
period from the announcement of the Mount Bastion acquisition on
September 5, 2018 until today: 1) US$
WTI prices have fallen from a high of US $76.24 to as low as US $56.85 per barrel, including 11 consecutive days
of falling WTI prices; 2) the Canadian oil industry has experienced
the unprecedented widening of Edmonton to WTI light oil differentials from
US $10/bbl to as high as US
$41/bbl; and 3) Canadian WCS crude
oil differentials to WTI have widened from US$24.50/bbl, to as high as $46/bbl. On this basis, given Surge's disciplined
approach to the dividend policy, the Company's Board of Directors
and management have determined to maintain the dividend at its
current level ($0.10 per share
annually) until such time as market conditions warrant its
reconsideration.
The dividend is an eligible dividend for the purposes of the
Income Tax Act (Canada).
Surge Energy Inc. is an oil-weighted production and development
company with high quality, large oil in place, crude oil
reservoirs. Management is focused on delivering to its shareholders
solid per share organic growth, sustainable monthly dividends, and
further growth through accretive, high quality acquisitions.
FORWARD LOOKING STATEMENTS:
This press release contains forward-looking statements.
The use of any of the words "anticipate", "continue", "estimate",
"expect", "may", "will", "project", "should", "believe" and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements.
More particularly, this press release contains statements
concerning Surge's dividend policy, including Surge's policy
respecting future changes to the dividend. The forward-looking
statements are based on certain key expectations and assumptions
made by Surge, including expectations and assumptions concerning
the ability of Surge to execute and realize on the anticipated
benefits of the Mount Bastion acquisition; the performance of
existing wells and success obtained in drilling new wells;
anticipated expenses, cash flow and capital expenditures; the
application of regulatory and royalty regimes; prevailing commodity
prices and economic conditions; development and completion
activities; the performance of new wells; the successful
implementation of waterflood programs; the availability of and
performance of facilities and pipelines; the geological
characteristics of Surge's properties; the successful application
of drilling, completion and seismic technology; the determination
of decommissioning liabilities; prevailing weather conditions;
exchange rates; licensing requirements; the impact of completed
facilities on operating costs; the ability of Surge to increase its
dividend post-closing; the availability and costs of capital,
labour and services; and the creditworthiness of industry
partners.
Although Surge believes that the expectations and assumptions on
which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking
statements because Surge can give no assurance that they will prove
to be correct. Since forward-looking statements address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially
from those currently anticipated due to a number of factors and
risks. These include, but are not limited to, risks associated with
the oil and gas industry in general (e.g., operational risks in
development, exploration and production; delays or changes in plans
with respect to exploration or development projects or capital
expenditures; the uncertainty of reserve estimates; the uncertainty
of estimates and projections relating to production, costs and
expenses, and health, safety and environmental risks), commodity
price and exchange rate fluctuations and constraint in the
availability of services, adverse weather or break-up conditions,
uncertainties resulting from potential delays or changes in plans
with respect to exploration or development projects or capital
expenditures or failure to obtain the continued support of the
lenders under Surge's bank line. Certain of these risks are set out
in more detail in Surge's Annual Information Form dated
March 14, 2018 and in Surge's
MD&A for the period ended September 30,
2018, both of which have been filed on SEDAR and can be
accessed at www.sedar.com.
The forward-looking statements contained in this press release
are made as of the date hereof and Surge undertakes no obligation
to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.
Neither the TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) accepts responsibility
for the adequacy or accuracy of this release.
SOURCE Surge Energy Inc.