Surge Energy Inc. (“Surge” or the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of certain non-core oil and natural gas interests located in various areas of Alberta and Saskatchewan (the “Properties”). The Properties have been split geographically into the North Package, East Central Package, West Central Package and South Package as shown on the offsetting map.

The Properties consist of various working interests in both operated and non-operated oil and natural gas wells. Surge is selling the Properties in order to focus its operations on its core assets.

These low-decline Properties accounted for average daily production net to Surge for the first quarter of 2022 of approximately 882 boe/d total, consisting of 505 barrels of oil and natural gas liquids per day and 2.3 MMcf/d of natural gas.

Operating income net to Surge from the Properties in the first quarter of 2022 was approximately $2.9 million, or $11.6 million on an annualized basis.

Sproule Associates Limited (“Sproule”) prepared an independent reserves evaluation of the Properties as part of the Company’s year-end evaluation (the “Sproule Report”). The Sproule Report is effective December 31, 2021 using Sproule’s December 31, 2021 forecast pricing. Sproule estimates that, as of December 31, 2021, the Properties contained remaining proved plus probable reserves of 8.7 Bcf of natural gas and 2.8 million barrels of oil and natural gas liquids (4.3 million boe), with an estimated net present value of $48.1 million using forecast pricing at a 10% discount.

More specific information related to this divestiture is available at www.sayeradvisors.com. A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement.

Cash offers relating to this divestiture will be accepted until 12:00 pm on Thursday, July 7, 2022.

Preference will be given to offers to acquire multiple properties; however, offers may be considered for individual properties.

For further information please feel free to contact: Ben Rye, Grazina Palmer, or Tom Pavic at 403.266.6133.