Surge Energy (SGY:TSVX) recently announced that it has drilled a horizontal well located at Valhalla South in Western Alberta which yielded five-day test rates of 1,992 barrels of oil equivalent per day.

The well, which is the company's fifth in the Valhalla South Doig light oil pool, is now completed. Drilling the well required getting through 820 meters of Doig Formation and nine frac stages which averaged 30 tonnes of proppant per frac.

The results of this drilling illustrates the high quality of the light oil that exist in Valhalla, with the last three wells drilled having IP rates over 1,400 boe/d, investment bank Dundee Securities reports. Surge drilled the sixth well last month with plans to tie the well in during Q4.

The investment bank announced on September 13 that it was reaffirming its BUY rating, Top Pick ranking and C$12.00 target price for the oil and gas company. The company's stock opened at C$9.00 on September 13 after closing at C$8.80 the previous day. The stock hit a 52-week low of C$5.23 and rose to a 52-week high of C$10.45.