SAN DIEGO, April 30, 2007 (PRIME NEWSWIRE) -- Surge Global Energy, Inc. (OTCBB: SRGG) ("Surge" or the "Company") today announced an updated resource evaluation for its Red Earth oil sands properties in north central Alberta. Sproule Associates Limited ("Sproule"), an independent engineering firm, has provided an updated resource evaluation report that confirms the results of Sproule's June 30, 2006 report. As well, the joint venture partner and operator of the Red Earth properties has completed an internal analysis of the two stratigraphic wells drilled during the first quarter of 2007, an internal resource characterization study and high graded mapping of the target Bluesky zone, and, as a result, has identified the most prospective area for a thermal recovery project on the Red Earth properties.
Sproule's latest report, dated December 31, 2006, confirms the results of its prior report dated June 30, 2006, which estimated resource potential of between 2 and 3.1 billion barrels of discovered Original Bitumen in Place (OBIP) resources, or 2.5 billion barrels based on Swanson's Mean. The updated report utilized data collected from logs and core samples from seven stratigraphic wells that were drilled on the property prior to the end of 2006. The resource was classified according to the Canadian Oil and Gas Evaluation Handbook definition of discovered resource.
The joint venture partner and operator or the Red Earth properties has undertaken and completed the following:
* an internal analysis of the two additional (Block "A") wells
drilled during the first quarter of 2007. Evaluation of these
two wells supports the expectation of potential recovery under
thermal drainage.
* an internal resource characterization study and high graded
mapping of the target Bluesky zone. As a result, based on
data acquired to date, the most prospective area for a
thermal recovery project has been identified in South
Block "B". Additionally, other areas with exploration
potential on the Red Earth lands have been identified
and will be targeted for further delineation drilling.
The reservoir and fluid data acquired from the initial seven wells drilled in late 2006 in South Block "B" demonstrate good reservoir quality and saturations of possible commercial interest. Based on this, the JV partners will utilize the internal resource characterization study and the updated Sproule report to further investigate if the bitumen is recoverable and, if so, the type of thermal project, project economics, funding requirements and timing suitable for the Red Earth properties.
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. 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 its subsidiaries 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.