Surge Energy Inc. announces that its previously disclosed Upper Shaunavon crude oil discovery in SW Saskatchewan is continuing to expand with excellent on-going delineation drilling results. Surge now believes that this high quality, conventional sandstone pool is over 250 million barrels of net original oil in place, with over 200 (net) low risk development drilling locations, and full waterflood upside.

Surge management believes that the Company needs to strategically allocate capital towards the drilling and waterflooding of this exciting new Upper Shaunavon discovery, to the continued development of the Company's large OOIP, high quality Valhalla Doig light oil pool in NW Alberta, and to the continued development and waterflooding of Surge's large OOIP Sparky crude oil assets in SE Alberta. Accordingly, Surge management and Board have agreed to sell the Company's SE Saskatchewan and Manitoba assets for a purchase price of $430 million.

Tags: Surge Energy Inc.