Mr. Paul Colborne reports

SURGE ENERGY INC. ANNOUNCES CLOSING OF PREVIOUSLY ANNOUNCED UPSIZED EQUITY FINANCING

Surge Energy Inc. has closed the previously announced upsized, bought-deal equity financing of 7,568,000 common shares of Surge at a price of $9.25 per common share, for gross proceeds of approximately $70-million.

The company has also granted to the underwriters an overallotment option to purchase 1,135,200 additional common shares, representing 15 per cent of the size of the financing. The overallotment option may be exercised until 30 days following the closing of the financing.

The net proceeds from the financing are expected to be used to partially finance the previously announced acquisition of core area assets from Enerplus Canada. The financing was underwritten by a syndicate led by National Bank Financial Inc. and Peters & Co. Ltd.

We seek Safe Harbor.