Surge: At Peace with Sawn Lake Results

Surge Global Energy, Inc.

Surge Global Energy said that its subsidiary, Signet Energy, operator of the Sawn Lake development at the Peace River Oil Sands in Alberta, has successfully tested the reservoir for positive cold pumping production of crude oil from the 1-36 well.

Initial third-party test results conclude that the initial oil samples taken early in the flow show 10.7 API gravity with 3.1 percent sulfur, noted Surge. Lab analysis of further oil and water samples are expected 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," remarked David Perez, Surge's CEO.

"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," explained Leigh Cassidy, Signet's executive chairman and CEO. "To date Signet has earned six sections, or 3,840 net acres, by drilling and completing the first well."

Due to break-up (seasonal change), road restrictions have led to the temporary suspension of operations at the well site. The restrictions should be lifted early this summer. After operations resume, Signet expects to undertake a three-well drilling program in the late second quarter of 2006.