SAN DIEGO, April 5, 2006 (PRIMEZONE) -- Surge Global Energy, Inc. (OTCBB:SRGG), an oil and gas exploitation and development company, announced today that its subsidiary, Signet Energy, operator of the Sawn Lake development at the Peace River Oil Sands, has successfully tested the reservoir for positive cold pumping production of crude oil from the 1-36 well. Initial test results by third parties have concluded that the initial oil samples taken early in the flow period has been analyzed and determined to be 10.7 API with 3.1% sulphur. Lab analysis of further oil and water samples should be available within the next few weeks.
"These initial results are very encouraging and confirm our core data and geological studies that the heavy oil in place at Sawn Lake is indeed mobile to a degree using cold pumping methods," said David Perez, Chief Executive Officer of Surge Global Energy.
"This test well is the first of a 10 well delineation drilling program at the Sawn Lake property with which Signet will earn-in up to 69.5 sections under a Farmout Agreement with Deep Well Oil & Gas. To date Signet has earned 6.0 sections, or 3,840 net acres, by drilling and completing the first well," said Leigh Cassidy, Executive Chairman and Chief Executive Officer of Signet Energy.
Due to break-up (seasonal change), operations at the well site are currently suspended due to the imposition of road restrictions, which are anticipated to be lifted early this summer. Operations are expected to resume including a three well drilling program that Signet Energy expects to undertake in late second quarter of 2006.
About Surge Global Energy, Inc.
Surge Global Energy, Inc. global headquarters are located in San Diego, California and its subsidiary Signet Energy, Inc, offices are located in Calgary, Canada. Lead by a strong management team of industry veterans in the heavy oil and gas exploitation, the company is now positioned through its subsidiary to develop oil sands leases in the Sawn Lake property at the Peace River area of Alberta, Canada (Western Canadian Sedimentary Basin). Surge also holds a working interest in the Keg River Formation, Kitty Area of North Central Alberta, and the Santa Rosa Dome project in Mendoza province of Argentina. For more information on the company please visit www.SurgeGlobalEnergy.com.
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Forward-Looking Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include the statements regarding the Company's expectations, hopes or intentions regarding the future, including, but not limited to, general economic conditions, market and business conditions; potential production and industry capacity and estimates. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Those risks and uncertainties include the possibility the Company will not determine it is feasible to drill in the Farmout Lands or that if the Company does drill, it will not discover oil and natural gas in the quantities the Company currently anticipates. Other risks and uncertainties of the Company's business could cause actual results to differ and are discussed under the heading "Risk Factors" and in other sections of the Company's SB-2 filed with the SEC on December 30, 2005, the Company's Form 10-K for the 2004 fiscal year and in the Company's other periodic reports filed from time to time with the SEC. All forward-looking statements in this document are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statements.