SAN DIEGO, April 18, 2007 (PRIME NEWSWIRE) -- Surge Global Energy, Inc. (OTCBB:SRGG) ("Surge" or the "Company") today announced that the winter drilling program on its Red Earth properties in north central Alberta has been finalized with the completion of two stratigraphic wells. Surge, through its wholly owned operating subsidiary Cold Flow Energy, ULC, owns an undivided 30% working interest in 86,400 acres (net 25,920 acres) of oil sands leases in the Red Earth area of Alberta, consisting of four major contiguous blocks located in close proximity to existing services and infrastructure. Nine wells have now been drilled and cored on the properties. The data collected from the latest two wells, together with the data from the 7 wells cored in late 2006, is being evaluated to complete a resource characterization assessment of the properties, which will be used to plan and develop a capital expenditure program for the rest of 2007 and 2008. Surge anticipates providing more information about the planned capital expenditure program for its Red Earth properties in late May 2007.
David Perez, Chairman and Chief Executive Officer of Surge, commented, "A technical review report dated June 30, 2006 prepared by Sproule Associates estimated that the Red Earth property contains resource potential of up to 2.5 billion barrels of original oil in place. Surge's 30% estimated working interest is up to 750 million barrels, based on the June 30 report. We expect that the data from these last two wells will continue to support the estimates of the June 30 Sproule report."
About Surge Global Energy, Inc.
Surge Global Energy, Inc. is an early-stage oil and gas exploration and production company. Surge believes that it has one of the largest footprints among the junior exploration and production companies in the Peace River and Athabasca oil sands regions of Canada, with 49 net sections of land in two key areas. The properties have primary (cold flow) and secondary (in-situ thermal) recovery potential, which Surge intends to validate and refine through the drilling of additional stratigraphic and exploration wells. Surge also has an interest in an exploration stage oil and gas project in Argentina and is looking to identify, acquire and develop working interests in other underdeveloped oil and gas projects in socially and politically stable regions.
The Surge Global Energy, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2471
Forward-Looking Statements 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. Additional risks and uncertainties include the possibility that Surge will not discover bitumen, oil or gas in the quantities the Company currently anticipates. To fund the probable and proven reserve development cost effort, Surge and Cold Flow anticipate raising a significant amount of capital which will result in substantial future dilution to existing shareholders. 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/A filed with the SEC on February 14, 2007, the Company's Form 10-K for the 2006 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.