SAN DIEGO, Nov. 20, 2007 (PRIME NEWSWIRE) -- Surge Global Energy, Inc. (OTCBB:SRGG) ("Surge") announced today that its wholly owned Canadian subsidiary, Cold Flow Energy, ULC (Cold Flow), on November 16, 2007 entered into a letter of agreement whereby Cold Flow will purchase a convertible Debenture from CalStar Oil & Gas Ltd. ("CalStar") in the principal amount of $3,300,000 Cdn funds, convertible into 13,200,000 common shares at $0.25 Cdn per common share, for a term of one (1) year from date of issue. The Convertible Debenture will bear an annual interest rate of 10%.
The proceeds will be used by CalStar to further its exploration program in the Fenn Big Valley area of central Alberta and its oil exploration in California with its Joint Venture with Chevron U.S.A. Production Inc. in the Kern River Oilfield.
Pending negotiation of the Debenture subscription agreement terms and further due diligence by Cold Flow, CalStar has agreed to suspend discussions with third parties on any transaction and not provide any information to or respond to any inquiry by any third party until the earlier of December 16, 2007 or upon mutual termination by CalStar and Cold Flow at any time after December 16, 2007.
About Surge Global Energy, Inc.
Surge Global Energy, Inc. is a U.S.-based early stage oil and gas exploration company seeking to invest and acquire properties in the oil sands regions of Canada with a current interest in an exploration stage oil and gas project in Argentina and looking to identify, acquire and develop working interests in other underdeveloped oil and gas projects.
About Cal Star Oil and Gas Ltd.
CalStar is a Calgary-based junior oil & gas company that has oil projects in two jurisdictions, California, USA and Alberta, Canada. CalStar signed a Joint Venture Agreement with Chevron Production, Inc., in July of 2007. A 3-D seismic program is underway over its lands in the San Joaquin Basin in Bakersfield, California and a drilling program of 4 wells will be assessed in the first quarter of 2008. In Alberta, CalStar announced the spudding of its first well on November 13, 2007 and drilling is underway.
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