Surge Resources Inc.
NEX BOARD : SRH

June 14, 2007 14:00 ET

Surge Resources Inc.: Resumption of Trading and Option Grant

CALGARY, ALBERTA--(Marketwire - June 14, 2007) - Surge Resources Inc. ("Surge") (NEX BOARD:SRH) is pleased to announce that it anticipates trading of its common shares ("Common Shares") to resume on the NEX board of the TSX Venture Exchange (the "Exchange") on June 18, 2007. Trading of the Common Shares was halted upon the announcement on June 1, 2007 that Surge had entered into a letter of intent dated June 1, 2007 with Transeuro Energy Corp. ("Transeuro") (trading symbol "TSU" TSXV) whereby the parties agreed to negotiate a definitive agreement relating to a proposed purchase by Surge of certain assets from Transeuro (the "Transaction"). Pursuant to the Transaction, Surge will acquire from Transeuro, or its subsidiary, a 100% interest in four petroleum prospecting licenses (the "Licenses") granted by the government of Papua New Guinea and all related geological, seismic and technical data owned or obtained by Transeuro in relation to the lands represented in the Licences (collectively, the "Assets").

For more information regarding the Assets see the press release of Surge dated June 4, 2007 which is available at www.sedar.com and the report prepared by Fekete Associates Inc. entitled, "Undiscovered Hydrocarbon Resources - Petroleum Prospecting License (PPL) Blocks 257, 258, 259 and 260 - Papau New Guinea as at December 31, 2006" which was filed on www.sedar.com by Transeuro on April 30, 2007. Fekete Associates Inc. is the qualified reserve evaluator with respect to the Assets. Note that all resources attributable to the Assets are "undiscovered resources", meaning those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered and there is no certainty that any portion of the undiscovered resources will be discovered and, if discovered, such resource may not be economically viable or technically feasible to produce.

Concurrent with the closing of the purchase of the Assets, Surge intends to grant 950,000 incentive options to purchase Common Shares ("Options"), including 650,000 Options to directors and officers. The Options will have an exercise price of $0.85 per Common Share and will expire 5 years from the date of issuance.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

Contact Information

  • Surge Resources Inc.
    Raymond Antony
    President and Director
    (403) 264-6944