posted
Surge Global Energy Inc. Spuds First Well at Sawn Lake and Validates the Farmout Agreement with Deep Well Oil & Gas Inc. and Northern Alberta Oil, LTD. Thursday September 29, 12:17 pm ET
SAN DIEGO--(BUSINESS WIRE)--Sept. 29, 2005--Surge Global Energy, Inc. (OTCBB:SRGG - News) is very pleased to announce that it has spudded its first well at Sawn Lake, Alberta Canada on September 25th at 10:45 A.M. Surge CEO Fred Kelly said that, " The Alberta Energy and Utilities Board (AEUB) issued to Surge Well License (No. 0338653) on September 21, 2005 at 4:28 P.M. MT, despite the high demand for drilling rigs, within hours we were able to secure a rig from Precision Drilling. Late last Friday night we began preparation of the lease and commenced the move of drilling equipment Saturday (9/23) morning. The first well has been spudded targeting the Bluesky formation zone on SE1/4 of section 36, township 91, range 13 W5M. This well is now in the process of being drilled vertically and will be cored over the next five days." ADVERTISEMENT
David Perez, Chairman of Surge stated that "after extraordinary efforts by our management team within 96 hours after obtaining the drilling license we were able to prepare the site and move 22 trailer loads to commence drilling operations. Confirmation of the spud date was recorded on the AEUB web site http://www.eub.gov.ab.ca/bbs/data/wells/spud0926.txt. The well will undergo a comprehensive production test of reservoir performance, logging and deliverability over the next 30 days. This testing period will also allow oil samples to be gathered and further analyzed for reservoir quantification."
In addition, Surge denies it has defaulted on any terms of the Farmout Agreement with Deep Well Oil & Gas Inc. ("Deep Well") and Northern Alberta Oil Ltd. ("Northern"). Surge's counsel has validated our continuing entitlement to drill and earn our 40% undivided interest under the Farmout Agreement. Surge holds legal title and is the only Operator on record with the AEUB.
Surge'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 Ryder Scott, a leading engineering firms to contain a total of 820 million barrels of oil reserves in place (328 million applicable to Surge's 40% working interest). Further details can be viewed on the Surge website.
Surge Global Energy, Inc. with headquarters in San Diego, California and a satellite office in Calgary, Canada is now positioned to become a heavy oil and gas exploitation and development company with the establishment of a major operational base in the Sawn Lake Area of Alberta, Canada (Western Canadian Sedimentary Basin).
posted