"This is a strategic milestone for Surge Global Energy as we continue to grow our portfolio of oil and gas properties," said David Perez, Chairman and Chief Executive Officer of Surge Global Energy. "In today's geopolitical environment, there is a need for exploring and developing oil and gas resources from regions that can help provide a more reliable energy supply. As such, and following Surge's investment in the Sawn Lake Oil Sands development, we are continuing to focus on opportunities in Alberta, Canada."
Per the Farmout agreement, by April 30, 2006, Surge is required to either commence a program of 3D seismic or commit to the drilling of a Test Well by December 15, 2006. Upon drilling of the Test Well, Surge will earn working interest in the Farmout Lands per the following terms:
-- Before payout, Surge shall earn 100 percent of the Farmor's
Interest in that portion of the Farmout Lands comprising the Test
-- At payout, Kelso Energy (the Farmor) has the option to either
remain in the gross overriding position or to convert to an
undivided 40 percent working interest.
-- Surge also shall earn 60 percent of Farmor's Interest in the
balance of the Farmout Lands other than the spacing unit for the
Following the completion of the Test Well, Surge can elect to drill an Option Well and earn interest in the Option Lands, per the same terms outlined above.
Most Popular Articles
From the Career Center
Jobs that may interest you