If you stumbled upon an oil & gas penny stock with just over 1 million shares in the float, would it interest you? How about if they just issued their 1st PR since February which highlighted 2 veterans in the industry joining their developing team? If the answer is “YES,” then have a close look at Surge Global Energy, Inc. (SRGG) whose float is so small that once traders find out they have a working interest in oil producing wells based in Kentucky, the only fried chickens will be the one’s who failed to see the signs SRGG stock is showing.
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SRGG Stock Quote
Market Cap: 2.40M
Last (Monday, Aug 12th): 0.20
52Wk High: 0.58
52Wk Low: 0.06
Avg Volume: 6,815
Authorized: 400,000,000
Issued and Outstanding: 12,219,673
Clark Morton, CEO: 5,108,357
William E. Fitzgerald, President: 5,108,358
Float: 1,685,369
14-Day Rel Strength: 80.50%
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First and foremost, the float of Surge Global Energy’s SRGG stock is so paper thin, that a mini rush of 100,000 shares of buying power would be enough to double or even triple the current PPS. Little do many know, but on August 1st, the 8-K’d some huge news which went unnoticed – until now.
As reported on the 8-K filing, Surge Global Energy concluded the purchase of a 32% working interest, 27.2% net revenue interest, from Padgett Energy, LLC, as operator of the Padgett/Danco 2013-A Joint Venture. For $211,300, the Company became a working partner of a 170.8 acre tract of land located in Muhlenberg County, Kentucky which already has 2 producing oil wells.
The 2 wells are reportedly producing about 20 barrels of oil per day gross (about 5.4 bbls/day net) to the Company’s net revenue interest.
But wait, the purchase agreement with Padgett Energy, LLC included within it that a 3rd well is to be drilled and completed within the next 30 days, and another 2 additional wells to be drilled after well #3 is completed. Although the Company is due to pony up another $29,167 for the completion costs of wells #4 and #5, for approximately $240,000, Surge Global Energy just put itself on the map.
It makes sense that they could pull of the acquisition as well since Surge Global Energy had $195,513 in cash and cash equivalents as of June 30, 2013. Throw in a couple of loans from some of the management team and you got yourself a revenue producing Company almost overnight.
As for SRGG stock, it’s a trader having shown fractional activity, at best, for the past couple of years. Since Clark Morton, CEO, and William E. Fitzgerald, President, own just over 10.2 million shares of SRGG as of the 10-K filing, the remainder is so fracking thin that if attention was to get paid to it, those in early are undoubtedly in-line for a fat pay day.
About SRGG Stock
Surge Global Energy, Inc. is an oil and gas exploration and development company.
Click here to view the SEC filings for SRGG.
Click here to view the website for Surge Global Energy.
Last 5 Trading Sessions:
| Date | Last | Change | Volume | |
| 08/12/13 | 0.2000 | unch | unch | 2,500 |
| 08/09/13 | 0.2000 | +0.0600 | +42.86% | 15,000 |
| 08/08/13 | 0.1400 | unch | unch | 9,100 |
| 08/07/13 | 0.1400 | +0.0100 | +7.69% | 3,700 |
| 08/06/13 | 0.1300 | unch | unch | 200 |
Bottom Line:
If you do the math, float divided by revenue potential multiplied by PPS and then subtract promotional awareness, SRGG suddenly looks better than an promoted penny stock out there for short-term gains. The move to increase total authorized shares from 200 million to 400 million is an obvious sign that the low float won’t last forever, but SRGG stock looks damn good at the moment.
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