Surge Energy FFO rises on higher production

Thu Mar 22, 2012 7:28am EDT
 
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(Reuters) - Oil and gas company Surge Energy Inc (SGY.TO: Quote) posted much higher quarterly funds from operations (FFO), helped in part by higher production and increased drilling activity at its Alberta operations.

For the October-December quarter, the company posted FFO of C$22.1 million ($22.25 million), or 35 Canadian cents a share, up from C$977,000, or 2 Canadian cents a share, a year ago.

Total revenue rose 131 percent to C$42.8 million.

Surge Energy said it will continue to grow organically by drilling in each of its core areas and plans to make accretive acquisitions this year.

The company, which has operations in Alberta, Manitoba and North Dakota, said it was well positioned to meet or exceed its 2012 exit production rate of 11,000 barrels per day, with oil and natural gas liquids growing to 77 percent of total production.

Total production for the quarter was 7,514 barrel of oil equivalent per day (boe/d), up 88 percent from an average of 4,005 boe/d, a year ago.

Shares of the company closed at C$10.78 on Wednesday on the Toronto Stock Exchange.

($1 = 0.9934 Canadian dollars)

(Reporting by Shounak Dasgupta in Bangalore; Editing by Supriya Kurane)