CALGARY, April 7 /CNW/ - Surge Energy Inc. ("Surge" or the "Company") (TSXV: SGY) wishes to clarify a reserves estimate made in the press release titled "Surge Energy Inc. Announces Two Significant North Dakota Light Oil Asset Acquisitions, Operational Update and Pending Increase to Bank Line" dated April 7, 2011.
Surge wishes to clarify a reserves estimate made in the press release referenced above in respect of acquired properties proximate to Goodlands, which should state the following:
"Management believes that by drilling 205 gross (120 net) horizontal wells, internally estimated Discovered Petroleum Initially In Place ("DPIIP")1 of 74 mmbbls (36 degree API) can be effectively exploited, with an internally estimated recovery factor of approximately ten percent."
Surge is a light oil focused energy production company with operations throughout Alberta, southwest Manitoba and North Dakota. Surge's common shares trade on the TSX Venture Exchange under the symbol "SGY" and has 56.1 million basic and 61.3 million fully diluted common shares outstanding at the date of this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
1 Discovered Petroleum Initially In Place (DPIIP) is defined as quantity of hydrocarbons that are estimated to be in place within a known accumulation, plus those estimated quantities in accumulations yet to be discovered. There is no certainty that it will be economically viable or technically feasible to produce any portion of this DPIIP except for those identified as proved or probable reserves. There is no certainty that it will be commercially viable to produce any portion of the resources