Mr. Paul Colborne reports

SURGE ENERGY INC. ANNOUNCES CLOSING OF CONVERTIBLE DEBENTURE FINANCING AND NOTICE OF REDEMPTION OF 6.75% CONVERTIBLE DEBENTURES DUE JUNE 30, 2024

Surge Energy Inc. has closed the previously announced convertible debenture financing with a syndicate of underwriters, led by National Bank Financial Inc., pursuant to which the underwriters purchased an aggregate principal amount of $48.3-million of convertible unsecured subordinated debentures of the company, including exercise in full of the overallotment option granted to the underwriters on a bought deal basis.

The net proceeds of the financing will be used to finance the redemption of the company's currently outstanding $34.5-million 6.75 per cent convertible unsecured subordinated debentures due June 30, 2024, as well as for general corporate purposes. Pending the repayment of the 2019 debentures, the net proceeds of the financing may temporarily be used to reduce general corporate indebtedness.

The debentures are listed on the Toronto Stock Exchange under the symbol SGY.DB.B (Cusip 86880YAC3).

Notice of redemption of 6.75 per cent convertible debentures

Surge is also pleased to announce that it has issued a notice of redemption to holders of the 2019 debentures. The 2019 debentures are not subject to a prepayment penalty.

As set out in the notice of redemption, Surge will redeem, as of Nov. 18, 2023, all of the aggregate principal amount of the 2019 debentures for cash. On the redemption date, Surge will pay the aggregate principal amount of the 2019 debentures (being $1,000 for each 2019 debenture) plus all accrued and unpaid interest thereon to but excluding the redemption date (less any tax required to be deducted).

The 2019 debentures are listed on the TSX under the symbol SGY.DB.A (Cusip 86880YAB5).

In accordance with the terms of the indenture governing the 2019 debentures, holders of the 2019 debentures have the right to convert their 2019 debentures, at their option, into common shares of Surge at a conversion price of approximately $19.12 per Surge share, at any time prior to 5 p.m. Calgary time on Nov. 17, 2023. A holder electing to convert the principal amount of their 2019 debentures will receive approximately 52 Surge shares per $1,000 principal amount of 2019 debentures converted, plus a cash payment for accrued unpaid interest up to, but excluding, the date of conversion (less any tax required to be deducted). No fractional shares will be issued on conversion but, in lieu thereof, the company will pay the cash equivalent thereof determined on the basis of the current market price (as defined in the indenture governing the 2019 debentures) of the Surge shares on the date of conversion.

All holders of 2019 debentures who fail to deliver a notice of conversion on or prior to 5 p.m. Calgary time on Nov. 17, 2023 (or such other earlier time as may be indicated by their broker, dealer, bank, trust company or other nominee), will have their 2019 debentures redeemed on the redemption date for a cash payment equal to the redemption price.

As all of the 2019 debentures were issued in book-entry-only form and are held by CDS Clearing and Depository Services Inc., beneficial holders of the 2019 debentures must contact their broker, dealer, bank, trust company or other nominee to exercise their right to convert their 2019 debentures.

About Surge Energy Inc.

Surge is an intermediate, publicly traded oil company focused on enhancing shareholder returns through free cash flow generation. The company's defined operating strategy is based on acquiring and developing high-quality, conventional oil reservoirs using proven technology to enhance ultimate oil recoveries.

We seek Safe Harbor.