Surge Global Energy, Inc., (SRGG.OB), an oil and gas exploration company based in Solana Beach, California, is a company that should be on your watchlist. At a time when analysts predict a continuing decline in world oil production, while at the same time predicting a continuing increase in oil demand, Surge is going after underdeveloped foreign and domestic oil and gas projects.
Specifically, Surge intends to explore and develop oil and gas projects on a worldwide basis, with the current focus being on Canada, Argentina, and the United States. The company already has projects in Alberta (Sawn Lake Project and Red Earth Project) and in Argentina (Santa Rosa Dome Project).
Surge recently acquired leases over nearly 2,500 acres in northern Nevada (the Green Valley prospect) to drill for oil, with the initial test well to be drilled within a year. The cost of the leases was $1/2 million, but the company’s CEO (and CFO), E. Jamie Schloss, expressed confidence. “The Green Valley prospect is the first of several oil and gas drilling prospects that Surge is looking to acquire and drill. Green Valley is on trend and has similar geology to the highly successful Grant Canyon field that produced over 20 million barrels of oil. Surge will utilize existing cash on hand to fund drilling operations,” he said.
The company expects to sell its crude oil and gas production to refiners, remarketers, and other companies, under both short and long term contracts. Though still in negative territory, Surge’s earnings-per-share has been increasing over the past several months, to one of its highest points in the last 5 years, while share price has been hovering around $.10 a share. Compare this to its high of over $4 a share in April 2006. (In June, Surge bought back over 13 million shares of common stock equivalents.)
Surge Global Energy was incorporated in 1997 as The Havana Group, Inc. The company is the parent company of the former Surge Global Energy (Canada) Ltd.
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