SAN DIEGO, March 23, 2006 (PRIMEZONE) -- Surge Global Energy, Inc. (OTCBB:SRGG), an oil & gas exploitation and development company, is pleased to provide the following update regarding operations in Sawn Lake as reported by its subsidiary, Signet Energy Inc., operator of the oil sands development.
The first horizontal well was successfully drilled and completed in the fourth quarter of 2005 to a depth of 672 meters with a horizontal leg of 630 meters within the Bluesky oil sands zone. Production testing scheduled to commence in early January 2006 was delayed until mid-February due to mechanical issues with the well equipment and the scheduling of service rigs to correct the issues. Over several weeks, production rates from the well have been minimal, comprised mostly of drilling fluids. However, over the past several days, the production of fluids from the well has increased significantly. The produced fluids were comprised of drilling mud and introduced water with strong showings of oil. A broken rod string has temporarily interrupted the production test, resulting in the suspension of pumping. Signet expects to resume the production test over the next few days with a view to determining oil quality and the potential for production, if any, from this initial well. The Company plans to continue with a further 9 well drilling program over the next several quarters to identify and quantify the productivity of the oil sands resource on the Sawn Lake property.
About Surge Global Energy, Inc.
Surge Global Energy, Inc. global headquarters are located in San Diego, California, and its subsidiary, Signet Energy, Inc., offices are located in Calgary, Canada. Led by a strong management team of industry veterans in the heavy oil and gas exploitation, the company is now positioned through its subsidiary to develop oil sands leases in the Sawn Lake area of Alberta, Canada (Western Canadian Sedimentary Basin). Surge also holds a working interest in the Santa Rosa Dome project in Mendoza province of Argentina. For more information on the company, please visit www.SurgeGlobalEnergy.com.
Forward-Looking Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include the statements regarding the Company's expectations, hopes or intentions regarding the future, including, but not limited to, general economic conditions, market and business conditions; potential production and industry capacity and estimates. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Those risks and uncertainties include the possibility the Company will not determine it is feasible to drill in the Farmout Lands or that if the Company does drill, it will not discover natural gas in the quantities the Company currently anticipates. Other risks and uncertainties of the Company’s business could cause actual results to differ and are discussed under the heading "Risk Factors" and in other sections of the Company's SB-2 filed with the SEC on December 30, 2005, the Company's Form 10-K for the 2004 fiscal year and in the Company's other periodic reports filed from time to time with the SEC. All forward-looking statements in this document are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statements.