Surge Global Energy, Inc. (OTC BB:SRGG.OB - News) (``Surge'' or the ``Company'') today announced that it has prepared an analysis of the benefits of the proposed business combination (the ``Combination''), announced on May 24, 2007, of Signet Energy, Inc. (``Signet''), a company in which Surge is a 27.3 percent shareholder, and Andora Energy Corporation (''Andora``). Surge believes that the Combination benefits the Company's shareholders by adding probable and possible reserves to Surge's asset portfolio by further consolidating control of the Sawn Lake assets that Surge currently has an investment in, and by adding contiguous resources in the Sawn Lake area to Surge's investment.
Surge will host an investor conference call on June 13, 2007 at 11:00 a.m. Pacific Time to discuss the benefits of the Combination to its shareholders. Participants calling from Canada or the United States should call toll free: 1.800.391.1709. Participants calling from other locations can access the call by calling: 001.310.539.2229. The conference bridge number is: 519876. Participants are advised to call in ten minutes early. The call will also be webcast from Surge's website at http://www.surgeglobalenergy.com/index.htm.
As announced on May 24, 2007, Signet has executed a letter of intent with Andora and its controlling shareholder, Pan Orient Energy Corp., setting forth the principal terms and conditions upon which Andora and Signet have agreed to enter into the Combination. The Combination will be effected by way of a plan of arrangement under the Business Corporations Act (Alberta) whereby the security holders of Signet will receive, in aggregate, 17,500,000 common shares of Andora (subject to adjustment) with an agreed value of Signet of CN$50 million. The obligation of Signet and Andora to complete the Combination will be subject to certain conditions, which include the completion of a definitive arrangement agreement. Upon completion of the Combination, the combined company will be focused on development of the South and Central Sawn Lake Heavy Oil Pool area.
About Surge Global Energy, Inc.
Surge Global Energy, Inc. is an early-stage oil and gas exploration and production company. Surge believes that it has one of the largest footprints among the junior exploration and production companies in the Peace River and Athabasca oil sands regions of Canada, with 49 net sections of land in two key areas. 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. For more information please visit our investor center at: http://www.surgeglobalenergy.com.
The Surge Global Energy, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2471
Forward-Looking Statements
Materials in this press release may contain information that includes or is based upon forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Forward-looking statements give our expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as ``anticipate,'' ``estimate,'' ``expect,'' ``project,'' ``intend,'' ``plan,'' ``believe,'' and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future steps we may take, prospective products, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, and financial results.
Any or all of our forward-looking statements here or in other publications may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results. Consequently, no forward-looking statement can be guaranteed. Our actual results may vary materially, and there are not guarantees about the performance of our stock.
Any forward-looking statements represent our expectations or forecasts only as of the date they were made and should not be relied upon as representing our expectations or forecasts as of any subsequent date. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise, even if our expectations or forecasts change. You are advised, however, to consult any further disclosures we make on related subjects in our reports filed with the SEC. In particular, you should read the discussion in the sections entitled ``Cautionary Statement Regarding Forward-Looking Statements'' and ``Risk Factors'' in our most recent Annual Report on Form 10-KSB, as it may be updated in subsequent reports filed with the SEC. That discussion covers certain risks, uncertainties and possibly inaccurate assumptions that could cause our actual results to differ materially from expected and historical results. Such factors include, but are not limited to, risks and uncertainties relating to the possibility that Surge will not discover bitumen, oil or gas in the quantities the Company currently anticipates. To fund the probable and proven reserve development cost effort, we anticipate raising a significant amount of capital which will result in substantial future dilution to existing shareholders. Other factors besides those listed there could also adversely affect our results.
Contact:
Surge Global Energy, Inc.
William Greene, Chief Financial Officer
858.704.5009 (Direct)
858.704.5010 (Main)
858.704.5013 (Fax)
bgreene@surgeglobalenergy.com
Bryan Mills Iradesso
Investor Relations
Ken Wetherell
403.503.0144 x224
contact@bmir.com
Source: Surge Global Energy, Inc.
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