Surge Global Energy
OTC Bulletin Board : SRGG

November 15, 2005 18:02 ET

Surge Global Energy Completes $8.55 Million Cdn Financing and Announces the Appointment of Leigh Cassidy as Executive Chairman & CEO of Surge Canada

SAN DIEGO--(CCNMatthews - Nov 15, 2005) -

Surge Global Energy, Inc. ("Surge") listed on the OTCBB:SRGG is pleased to announce that its subsidiary Surge Global Energy (Canada), Ltd. ("Surge Canada") has completed a private placement of 7% Secured Convertible Debentures (the "Debenture") for aggregate gross proceeds of $8,550,000 Cdn maturing on November 15, 2007. The debenture holders have the right prior to November 15, 2007 to convert the principal sum of its Debenture, in whole or in whole multiples of Cdn $1,000 into fully paid and non-assessable common shares of Surge Canada at Cdn $1.00 per common share or exchange the principal sum of its Debentures, in whole or in whole multiples of Cdn $1,000 into fully paid and non-assessable common stock of Surge at US $1.00 per share. The Debentures are deemed to be converted into fully paid and non-assessable common shares of Surge Canada at Cdn $1.00 per common share at any time prior to November 15, 2007 on the condition that the common shares of Surge Canada are listed and posted for trading on the Toronto Stock Exchange or the TSX Venture Exchange.

The net proceeds from the placement of the Debenture will be used for; the payment of the expenses in connection with the placement of the Debenture, a second payment to Deep Well Oil & Gas (Alberta) Ltd. (Deep Well) and Northern Alberta Oil Ltd. (NAOL) of U.S. $1,000,000 pursuant to the farmout agreement in respect of the Sawn Lake Project, capital expenditures for the exploitation and development of the Sawn Lake Project and finally for general corporate purposes.

Surge is also pleased to announce that Mr. C. W. Leigh Cassidy has been appointed Executive Chairman and Chief Executive Officer of Surge Canada. Prior to joining Surge Canada, Mr. Cassidy was instrumental in the creation and development of Fort Hills Oil Sands Project for UTS Energy as its Vice President, CFO from 1996 to 2005. Over the past 20 years Mr. Cassidy has held executive and CFO positions in corporate, financial, commercial lending, M&A, taxation and treasury operations. Mr. Cassidy received his Chartered Accountant designation in 1981 and holds a Bachelor of Business Administration degree. Fred Kelly is assuming the position as Chief Operating Officer of Surge Canada.

Furthermore, Surge is pleased to announce a settlement to the litigation related to the farmout agreement entered into on February 25, 2005 with Deep Well & NAOL. In the Farmout agreement Surge Canada will drill 10 wells on the farmout lands in order to earn up to 50% of Deep Well's 80% position in the Farmout lands. On November 15, 2005 the parties mutually agreed to amend the farmout agreement. The amendments include an extension of the earning period until February 25, 2008, an extension until September 25, 2006 to drill the option well (the second of 10 wells), payment by Surge Canada of U.S. $1,000,000 to Deep Well on November 15, 2005 in full and complete payment of the U.S. $2,000,000 prospect fee owing under the farmout agreement. Surge Canada will issue 7,550,000 common shares to Deep Well in full and complete satisfaction of the obligation of Surge U.S. to issue its shares to the Deep Well. Surge will have a proxy on the Deep Well's shares of Surge Canada until February 25, 2007.

In addition to amending the Farmout agreement Deep Well and Surge have mutually agreed to withdraw their respective legal actions against each other in respect to the farmout agreement. Surge will retain a 47.3 percent interest in its subsidiary Surge Canada and is entitled to vote an additional 31.4 percent (for a total of 78.75%) of the outstanding common shares of Surge Canada, both percentages are prior to conversion of the Debentures. Surge Canada's 40 percent undivided working interest in the properties covered by the farmout agreement, is estimated to ultimately total 328 million barrels of oil reserves in place, of which we expect that primary recovery, using only conventional cold pumping methods, would yield at least 10% or 32.8 million barrels of heavy oil ranging from 9-11 API. The total project has been estimated by a leading independent engineering firm to contain 820 million barrels of oil in place (328 million applicable to Surge's 40% working interest. Further details of the report can be viewed on the Surge website.

MGI Securities Inc. acted as exclusive agent and advisor on this financial transaction.

Surge Global Energy, Inc. with headquarters in San Diego, California and its wholly owned subsidiary Surge Global Energy (Canada) Ltd. based in Calgary, Canada is now positioned to become a heavy oil and gas exploitation company with the establishment of a major operational base in the Sawn Lake Area of Alberta, Canada (Western Canadian Sedimentary Basin).

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This release contains forward-looking statements with respect to expected capital, investment and exploration spending, future drilling plans, possible reserve additions, the timing and levels of production, Some factors that could potentially affect the exploration and drilling activities, possible reserve additions, the timing and levels of production, and the Sawn Lake Oil Fields development include pricing, supply and demand for petroleum products, amount of capital available for exploration and development, occurrence of acquisitions/dispositions of oil and gas properties, regulatory constraints, timing of commencing production from new wells, drilling rig availability, unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto, and other geological, operating and economic considerations. The foregoing factors (among others) could cause actual results to differ materially from those set forth in the forward-looking statements. In accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Surge Global Energy Inc. has included in its Annual Report on Form 10-K for the year ended December 31, 2004, and subsequent Forms 10-Q and 8-K, cautionary language identifying other important factors, though not necessarily all such factors, that could cause future outcomes to differ materially from those set forth in the forward-looking statements.

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