SAN DIEGO, Sept. 25, 2007 (PRIME NEWSWIRE) -- Surge Global Energy, Inc. (OTCBB:SRGG) ("Surge") announced today that on September 19, 2007 its former Canadian subsidiary, Signet Energy, Inc. ("Signet"), completed a previously announced business combination with Andora Energy Corporation ("Andora"), for an aggregate 10,741,128 common shares of Andora as a result of the transaction. The combined company will assume the name "Andora Energy Corporation." Surge now owns approximately 3,429,138 of the issued and outstanding common shares of Andora or 5.78% on a fully diluted basis.
The combination of the two companies also resulted in the repayment of $11.4 million in debentures issued by Signet on two occasions in 2005. Those debentures, prior to combination were exchangeable into Surge free trading shares. An additional $775,000 of the debenture holders elected conversion into Andora shares. After repayment of all obligations Signet issued the balance of its cash of approximately $3.2 million to Andora.
David Perez, Chairman and CEO of Surge, who also owns approximately 252,361 Andora shares, expressed that the combination of the two companies is viewed as very positive for Surge shareholders. "It significantly reduces the risk formerly inherent to Signet by diversifying over Andora's adjacent land and reserve base. It should also result in broadened technical expertise to pursue the exploration and development efforts which is also deemed very positive," he stated.
Andora is focused on in-situ oil sands development with operations concentrated on 16 sections of oil sands permits owned 100% in Sawn Lake, Northern Alberta. The lands owned by the company include 10% of 45 sections, 50% of 18 sections, 100% of 16 sections and a 3% GORR on the most prospective 36.5 sections. Andora reserves include: Probable: 97.4MM bbls ($439mm NPV (10) BT) and Possible: +82.0MM bbls ($391 mm NPV (10) BT) with a total 3P Reserves of 179.4MM bbls (Andora, net after royalty) as per a December 31, 2006 independent third party reserve report which was prepared in accordance with Canadian standards NI 51-101 and COGEH. Subject to completion of an updated MI-51-101 compliant reserves report, it is estimated the new combination of the two companies will have a net of (100%) interest in 230-260MM bbls of 3P Recoverable Reserves.
The new seven person board of directors of Andora is deemed as bringing diversity of experience with depth in energy, building, financing, oil field projects permitting and a proven track record in providing shareholders with healthy returns when exiting heavy oil asset plays. Serving on the new board is Robert Farquharson, Executive Chairman of Andora and former President and CEO of Murphy Oil. Also comprising the board are Gerry Macey, Executive Vice President Exploration PanCanadian Petroleum; Jeff Chisholm, Chairman and CEO of Andora and Pan Orient Energy Corp.; Tyler Cran, Founder, President and COO of Andora; Michael Hibberd, former Vice President and Director of ScotiaMcleod; and former Signet directors, Greg Cave, President of Piper Resources and former VP of Exploration of Piper Energy, and Leigh Cassidy, former CEO of Signet and former CFO of UTS Energy Corporation.
About Surge Global Energy, Inc.
Surge Global Energy, Inc is a U.S.-based early stage oil and gas exploration company seeking to invest and acquire properties in the oil sands regions of Canada with a current interest in an exploration stage oil and gas project in Argentina and looking to identify, acquire and develop working interests in other underdeveloped oil and gas projects.
Forward-Looking Statements
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