Surge Energy

Updates

October 22, 2014: another article, same:

Legacy Oil and Gas Inc. has officially acquired Corinthian Exploration Corp. in a deal that includes assets from the Spearfish formation in Bottineau County, N.D. Legacy provided Corinthian with 20.1 million common shares and also assumed roughly $34 million of Corinthian debt.

As of January 2014, Legacy had 157.2 million common shares. The North Dakota assets come with high working interests, 3D seismic coverage and infrastructure associated, “with a large, light oil prospective undeveloped land base,” the company said of its North Dakota acreage acquisition.

The Spearfish formation ranges in depth from 2,900 feet to 3,400 feet, according to the North Dakota Geological Survey. It is the youngest oil-producing formation in North Dakota. The formation is productive in areas where oil has migrated from the Madison group formation, according to the N.D. Geological Survey.

June 24, 2014: "Anon 1" provides an update (see below in the comments but I moved it up here where it is "google-searchable" and it makes it easier to click on the link to the pdf:

Legacy likes ND more than I thought - either the Spearfish or unmentioned stacked pays.

They now have essentially all of it.

http://www.legacyoilandgas.com/upload/news_release/179/ce6ffda927ba/news-release---june-24-2014.pdf: Legacy buys Corinthian; press release, June 24, 2014. 

Corinthian is gone - unless it reappears.

There are lots of undrilled leases. To be renewed or drilled or dropped.

Might Legacy have a buyer? Is this giving it more to sell? It will sell the company for the right price. Hey, maybe EOG will buy Legacy to complete the circle.

Legacy closed another purchase of a private company for stock 12 days ago. Busy summer in Calgary.

June 21, 2014: "Anon 1" sent in a comment (see below). Because comments are not "google-searchable," I will bring the comment up here:

From memory.

Legacy Oil + Gas and EOG leased land in Bottineau County (Spearfish formation, generally the target).

EOG sold to Surge Energy. 

Corinthian bought something. Surge bought something. Ritchie? [Yes, here's the Ritchie story.]

Surge bot Corinthian. But not in ND, I now think. Corinthian was still in ND. Confusing.

Then there were 3 in ND. S, L, and C. [Surge, Legacy, and Corinthian]

Then Corinthian bought Surge (ND only).

Two (2) left.

(Also, Anadarko has 100,000 acres for sale. No takers last I looked. In Bottineau County. I don't recall it being mentioned here, or anywhere except the broker's website.)

So 2 in ND. C and L.

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Paul was chairman of Surge and Legacy. Both HQ in same building. Paul was also on board of Crescent Point (far bigger, and a big deal in the Calgary world.)

Surge and Legacy both fell in the Canadian energy stock doldrums.

Paul took over as CEO of Surge. Dan moved from CEO to board.

Paul wheeled and dealed. Spearfish ND sold when he took over. Started dividends. Bot stuff. Sold stock to fund it. Grew. Stock doubled.

Paul left boards of Crescent Point and Legacy this year. (Might CP buy one? Might one buy the other?)

The Canadian energy stocks are now hot. Surge and Legacy are hot.

Legacy and Surge have plays just north of ND. Especially Legacy. Crescent Point, also. Varied targets. ND oil companies can learn from them. Stacked plays or scattered plays. Some of those will be drilled in ND some day.

Legacy and Surge use waterfloods. Lots of projects. Again, ND players can learn from them.

MHR sold their Canadian land. Might have missed its potential, private buyer. MHR has ND land. Some or all is for sale. Might sell out to fund Utica. MHR is also playing in Australia. Crescent Point might buy MHR ND land, partly for the other stacked pays, if they are there.

Legacy also has a "side car." LGX Oil and Gas. Tiny. No employees. Legacy runs it. Little money. Lots of land. One big well last year. In the Alberta Bakken, but not really Bakken.

I think Legacy, Surge, and Crescent Poing all have some fine wells. Some public. Some not yet. They seem to be cracking some codes in various plays. Not talking much.

Legacy has a sage grouse problem in their Manyberries play. Limiting activity. A year earlier.

June 20, 2014: I assume this offer will be removed from the internet if someone buys it. I don't know when it was first posted; I brought it here as of this data. I will save the data here in case it otherwise disappears:

Anadarko Petroleum Corporation is offering for sale all of its rights, title and interest
•    Potential reserves per well of 50 – 200 MBOE for each zone
•    Estimated drilling and completion costs are $1.3 MM for the Spearfish and $1.8 MM for the Bakken

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LEASEHOLD RIGHTS
•    Approximately 43,585 net acres (59,353 gross acres) 4,000 acres
•    Seven percent of lease expirations occur in of 2013, twenty eight percent in 2014, twenty nine percent in 2015, and remainder in 2016 and beyond
•    Majority of leases provide for two-year option to extend the primary term.

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GEOLOGY
•    Prospective for large scale oil accumulations trapped along the Triassic Spearfish and Mississippian Devonian Bakken truncation edges
•    Reservoirs comprised of 20-50 foot thick sandstone sections
•    Nearby fields have produced approximately 100 MMBOE the Spearfish formation
•    OOIP at the Bakken analogous View field exceeds 5 BBO with potential reserves of 500 MMBOE   

August 27, 2013: the August 26, 2013, entry at this link may or may not be accurate.  The good news: it looks like we only have to follow two companies in the North Dakota Spearfish play.

Original Post

This is a "new" page for Surge. Earlier updates regarding Surge can be found at this link. "Legacy Energy" has had its own page for awhile. Time for "Surge Energy" to have its own page. Most of this has been posted before; just trying to get Surge and Legacy organized with their own pages.

March 16, 2013: 

For quite some time I was confused by Corinthian, Legacy, and Surge -- three Canadian operators who extended their Canadian Spearfish play into northwestern North Dakota, most notably Bottineau County. (See first comment; received after this was posted.)

Surge bought Corinthian sometime in the last few years, but obviously a lot of older wells will still be "Corinthian" wells.

Legacy is separate from Surge, but both have close working relationships, at least in North Dakota.

According to Legacy's corporate presentation, March, 2013, in Bottineau County, ND:

• to drill 3 gross (1.23 net) hz wells in ND in 1Q13
• to drill 2 gross (2 net) vertical exploratory wells to test Madison and Spearfish in ND in 1Q13
• 200 net locations in Williston Basin: 24 hz wells/section in Waskada (Canada); 20 hhz wells in Landa/Westhope (North Dakota)
• Booked 21 net wells; unbooked 177 net wells
• 100% drilling success in ND; 44 hz multi-frac Spearfish wells to date
•  participated in 17 gross (10 net) hz multi-frac Spearfish wells in 2012; 100% success rate
• average cost: $1.5 million (decreased)