August 10, 2011 / 3:43 PM / 7 years ago

UPDATE 2-Surge Energy climbs into black as output jumps

* Q2 EPS C$0.06 vs. loss C$0.26 yr ago

* CFPS C$0.21 vs. C$0.17

* Production up 124 pct to 5,051 boed (Adds details, background, updates stock price)

CALGARY, Alberta, Aug 10 (Reuters) - Surge Energy Inc SGY.V climbed into the black in the second quarter as output more than doubled against a backdrop of sharply higher crude prices, the Canadian junior oil company said on Wednesday.

Surge, which explores for light oil in Alberta, Manitoba and North Dakota, said it expects to end the year producing 7,500 barrels of oil equivalent a day, up 48 percent from its second-quarter average.

The company earned C$3.3 million ($3.3 million), or 6 Canadian cents a share in the quarter, compared with a year-earlier loss of C$7.1 million, or 26 Canadian cents a share.

Funds from operations, a glimpse into the company’s ability to pay for drilling, rose 151 percent to C$11.9 million from C$4.7 million. Per share, the figure was 21 Canadian cents, up 24 percent from 17 Canadian cents

Output averaged 5,051 barrels of oil equivalent a day in the quarter, up 124 percent despite an 18-day maintenance outage at the company’s Valhalla South operations in Alberta and shut-in production at Waskeda in Manitoba due to wet weather and flooding in the region.

Total revenue rose 167 percent to C$29.8 million, with about 80 percent coming from oil and natural gas liquids, Surge said.

Realized oil prices averaged C$92.36 a barrel, up 39 percent from a year earlier.

Surge shares were up 25 Canadian cents, or 3 percent, at C$8.75 on the TSX Venture Exchange. They are up more than 22 percent this year.

$1=$0.99 Canadian Reporting by Jeffrey Jones and Ankur Banerjee; editing by Rob Wilson

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