March 2 (Reuters) - Shares of Surge Energy Inc rose as much as 5 percent to a life high on Friday, after the Canadian junior oil and gas explorer raised its 2011 proved plus probable oil and natural gas liquids reserves by more than half.
Surge, which explores for light oil in Alberta, Manitoba and North Dakota, said on Thursday proved plus probable oil and natural gas liquids (NGLS) reserves rose 55 percent to 19.2 million barrels in 2011 from last year.
At least one brokerage — NCP Northland Capital Partners—raised its price target on Surge’s stock to C$14.75 from C$13.
“With an active 2012 drilling program and incremental work on its waterflood prospects, we expect to see similar growth in production and reserves, while secondary recovery schemes will likely smooth out longer term production declines,” the brokerage said in a note to clients.
Surge said it is drilling its 10th well at its Valhalla South property in British Columbia and plans to drill at least five more wells there this year.
Shares of the Calgary-based company were up 3 percent at C$10.69 in early trade on the Toronto Stock Exchange. The stock, which gained 15 percent of its value till Thursday close, had earlier touched a high of C$10.90. (Reporting by Maneesha Tiwari in Bangalore; Editing by Sriraj Kalluvila)