Surge to Divest Red Earth Assets

Surge Global Energy, Inc., along with its indirect wholly owned subsidiary, Peace Oil Corp., has entered into a binding letter agreement with Peace Oil's current joint venture partner, North Peace Energy Corp., to sell all of Peace Oil's working interest (30%) in certain oil sands leases in the Red Earth Area of north central Alberta, Canada. Total consideration for the sale is CDN$20 million, consisting of CDN$15 million in cash and CDN$5 million in common shares of North Peace (2,272,727 common shares at a deemed price of CDN$2.20 per share). The common shares issued will be subject to a contractual one-year hold period. The acquisition is expected to close on or about June 28, 2007 and no later than September 1, 2007.

The CDN$20 million in North Peace consideration compares to Surge's CDN$16.620 million acquisition cost of Peace Oil in March 2007 and Surge's March 31, 2007 Peace Oil book value of US$14.4 million. Upon completion of the asset sale, North Peace will control 100 percent of the parties' leases in the Red Earth Area. North Peace has indicated via recent press release that it is confident in the commercial potential of the leases in the Red Earth Area and confirmed that plans for a Cyclic Steam Stimulation pilot project are advancing as scheduled, with the first steam cycle expected in late 2008 or early 2009.

Surge Global Energy, Inc. is an early stage oil and gas exploration and production company. Surge seeks to invest and acquire properties in the oil sands regions of Canada. Surge also has an interest in an exploration stage oil and gas project in Argentina and is looking to identify, acquire and develop working interests in other underdeveloped oil and gas projects in socially and politically stable regions.


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