SAN DIEGO, Aug. 23, 2007 (PRIME NEWSWIRE) -- Surge Global Energy, Inc. (OTCBB:SRGG) ("Surge") reported an increase in its cash balance and a reduced net loss in the second quarter.
Surge's cash balance at the end of June 30, 2007 was $8.551 million, up from $683,000 as of March 31, 2007 due to the previously announced sale by Surge's indirect wholly-owned subsidiary, Peace Oil Corp., of its 30% Peace Oil working interest in certain oil sands leases in the Red Earth Area of north central Alberta, Canada to North Peace Energy Corp. on June 28, 2007. Additional proceeds from the Peace Oil sale resulted in an equity interest in North Peace Energy Corp. valued at $4.717 million on June 30, 2007.
For the first six months of the fiscal year, the company reported a net loss of $2.046 million, down from $4.947 million in the year-ago period. The $2.901 million improvement was largely the result of the gain on sale of the Peace Oil assets, net of tax, compared with the year-ago period.
In the wake of the recent market turbulence due to liquidity concerns, Surge management guided by its independent of directors is considering how best to deploy its cash balance.
About Surge Global Energy, Inc.
Surge Global Energy, Inc. is an early stage oil and gas exploration and production company. Surge seeks to invest and acquire properties in the oil sands regions of Canada. 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. For more information please visit our Investor Center at: http://www.surgeglobalenergy.com.
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