Surge Resources Inc.

November 03, 2005 16:39 ET

Surge Resources Inc.: Summary of Financial Highlights for the Year Ended June 30, 2005

CALGARY, ALBERTA--(CCNMatthews - Nov. 3, 2005) - Surge Resources Inc. ("Surge") (TSX VENTURE:SRH) has released its Annual Report containing its annual financial statements for the year ended June 30, 2005. Pursuant to the requirements of National Instrument 54-102, this news release provides a reasonable summary of certain financial information contained in the Annual Report. Concurrently with this news release the Company is filing the Annual Report with the regulatory authorities through SEDAR ( and has mailed it to shareholders whose names appear on the Company's supplemental list.


Year ended June 30
2005 2004
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Revenues Nil $ 3,422,397
Cost of Sales Nil $ 2,763,115
Loss before discontinued operations $ 353,383 $ 248,090
Gain (loss) from discontinued operations $ 257,254 Nil
Net loss $ 96,129 $ 417,165
Loss per share $ 0.01 $ 0.03
Total assets $ 686,156 $ 1,046,222
Total long-term liabilities Nil $ 10,238
Dividends Nil Nil

The Company had a loss from continuing operations of $353,383 for the year ended June 30, 2005 as compared to $248,090 for the year ended June 30, 2004. This increase was a result of a decrease in general and administrative expenses from $250,112 to $132,498 and an increase in stock based compensation from nil to $219,178. Net loss for the year decreased from $417,165 for the year ended June 30, 2004 to $96,129 for the year ended June 30, 2005. This decreased loss primarily resulted from a gain on the sale of a subsidiary in the amount of $557,400 for the year ended June 30, 2005. The gain on sale occurred as the subsidiary was sold for a nominal amount but at the time, it had significant liabilities.

At June 30, 2005, the Company had working capital of $656,144. On January 20, 2005 the Company received net proceeds of $846,000 by way of private placement, which, was used in part to fund its working capital deficiency and to honor the bank guarantee of its former subsidiary.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Surge Resources Inc.
    Ray Antony
    (403) 264 6944