Surge Energy Inc (SGY)

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SURGE ENERGY INC. ANNOUNCES APPROVAL FOR RENEWAL OF NORMAL COURSE ISSUER BIDJune 16, 2026 5:30 PM
PR Newswire (Canada) CALGARY, AB, June 16, 2026 /CNW/ - Surge Energy Inc. ("Surge" or the "Company") (TSX: SGY) is pleased to announce that the Toronto Stock Exchange (the "TSX") has accepted Surge's notice of intention to renew the Company's normal course issuer bid ("NCIB") for its outstanding common shares ("Common Shares") in accordance with the rules and policies of the TSX. The NCIB is an integral component of the Company's return of capital framework for the distribution of excess free cash flow, providing direct returns to Surge shareholders. Surge's Board of Directors and Management believe that at certain times the prevailing trading price of Surge's Common Shares does not reflect their underlying value. Consequently, the repurchase of Common Shares provides an opportunity to enhance the Company's per share metrics.Based on Surge's independent reserve report for the year ended December 31, 2025, prepared by GLJ Ltd., the Company's net asset value ("NAV")1, when run at US$75 WTI flat pricing, is $11.04 per share for total proved reserves, and $17.10 per share for proven and probable reserves. On this basis, Management is currently allocating up to $5 million per month towards share buybacks under the Company's NCIB. Under the Company's current NCIB, which is set to expire on June 18, 2026, the Company is authorized to repurchase up to 9,597,280 Common Shares. As at June 5, 2026, Surge has repurchased an aggregate of 1,419,400 Common Shares under the Company's current NCIB, at a weighted average price of $7.67 per share. This represents approximately 1.4 percent of the Company's outstanding Common Shares when the expiring NCIB was approved on June 16, 20252.Surge expects that the repurchase of Common Shares will benefit its remaining shareholders by increasing their equity ownership interest in the Company. In addition, Surge does not have to pay a dividend on the Common Shares that it acquires pursuant to the NCIB, thereby improving the Company's sustainability.The Company had 99,693,219 Common Shares issued and outstanding as at June 5, 2026. The NCIB allows Surge to repurchase up to 9,696,283 Common Shares of the Company (representing approximately 10 percent of the 96,962,830 issued and outstanding Common Shares that comprise the public float as of June 5, 2026) over a period of twelve months commencing on June 19, 2026. The NCIB will expire no later than June 18, 2027. The actual number of Common Shares which may be repurchased pursuant to the NCIB will be determined by management of the Company. Any Common Shares that are repurchased by Surge under the NCIB will be cancelled.Under the NCIB, Common Shares may be repurchased in open market transactions through the facilities of the TSX, on alternative Canadian trading systems, if eligible, or on other designated exchanges such as CBOE Canada Inc., Canadian Securities Exchange (CSE) or Nasdaq CXC Limited, in each case, in accordance with the rules of the TSX governing NCIBs. The price paid by the Company for any such Common Shares will be the prevailing market price at the time of repurchase.The total number of Common Shares the Company is permitted to repurchase is subject to a daily purchase limit of 219,308 Common Shares, representing 25 percent of the average daily trading volume of 877,233 Common Shares on the TSX, calculated for the six-month period ended May 29, 2026. Notwithstanding the daily purchase limit, Surge may make one block purchase per calendar week which exceeds the daily repurchase restrictions.______________________________1 See Oil and Gas Advisories.2 Surge's share count on June 16, 2025 was 99,133,257 Common Shares outstanding.The Company intends to approve the implementation of an automatic repurchase plan with its designated broker in order to facilitate purchases of Common Shares under the NCIB, at times when the Company ordinarily would not be active in the market due to regulatory restrictions or self-imposed blackout periods. Once implemented, purchases made pursuant to the automatic repurchase plan, if any, will be made by the Company's designated broker based upon the parameters prescribed by the TSX, applicable Canadian securities laws and the terms of the written agreement between the Company and its designated broker. If entered into, the automatic repurchase plan will constitute an "automatic plan" for purposes of applicable Canadian securities legislation and the form of agreement to be entered into has been reviewed by the TSX.Forward-Looking StatementsThis press release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.More particularly, this press release contains statements concerning: Surge's intention to commence the NCIB; the anticipated expiration date of the NCIB; the number of Common Shares to be repurchased pursuant to the NCIB, the timing of such purchases and the price to be paid for Common Shares repurchased; the amount the Company expects to allocate to monthly buybacks under the NCIB; the expectation that the repurchase of Common Shares will benefit its remaining shareholders by increasing their equity ownership interest in the Company; the expectation that the Company's sustainability will improve by not having to pay a dividend on the Common Shares repurchased pursuant to the NCIB; the implementation of an automatic purchase plan during the NCIB, the purchase of Common Shares thereunder by the Company's designated broker, that the automatic purchase plan will constitute an "automatic plan" for purposes of applicable Canadian securities legislation and the form of agreement to be entered into in respect of the automatic repurchase plan; and the exchanges through which the Company may make repurchases pursuant to the NCIB.The forward-looking statements are based on certain key expectations and assumptions made by Surge, including expectations and assumptions around the performance of existing wells and success obtained in drilling new wells; Surge's belief that at times the prevailing trading price of the Common Shares does not reflect the underlying value of the Common Shares; anticipated expenses, cash flow and capital expenditures; the application of regulatory and royalty regimes; prevailing commodity prices and economic conditions; development and completion activities; the performance of new wells; the successful implementation of waterflood programs; the availability of and performance of facilities and pipelines; the geological characteristics of Surge's properties; the successful application of drilling, completion and seismic technology; the determination of decommissioning liabilities; prevailing weather conditions; exchange rates; licensing requirements; the impact of completed facilities on operating costs; the availability and costs of capital, labour and services; and the creditworthiness of industry partners.Although Surge believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Surge can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the condition of the global economy, including trade, public health, international conflict and other geopolitical tensions and events (including war, military action, terrorism, trade disputes, and international responses thereto); risks associated with the oil and gas industry in general (e.g. operational risks in development, exploration and production); delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks); commodity price and exchange rate fluctuations and constraint in the availability of services, adverse weather or break-up conditions; the imposition or expansion of tariffs imposed by domestic and foreign governments or the imposition of other restrictive trade measures, retaliatory or countermeasures implemented by such governments, including the introduction of regulatory barriers to trade and the potential effect on the demand and/or market price for Surge's products and/or otherwise adversely affects Surge; hedging risk; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; and failure to obtain the continued support of the lenders under Surge's bank line. Certain of these risks are set out in more detail in Surge's annual information form for the year ended December 31, 2025 dated March 4, 2026 and in Surge's management's discussion and analysis for the period ended March 31, 2026, both of which have been filed on SEDAR+ and can be accessed at www.sedarplus.ca.The forward-looking statements contained in this press release are made as of the date hereof and Surge undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.Oil and Gas Advisories"Net Asset Value (NAV)" is calculated as reserve value discounted at 10% on a BTax basis, less the Company's net debt, a non-GAAP financial measure, at December 31, 2025 of $220.6 million and is divided by 98.9 million common shares outstanding as at December 31, 2025.Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare our operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes.For further information, please visit our website at www.surgeenergy.caNeither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility of the accuracy of this release.  SOURCE Surge Energy Inc. Original: SURGE ENERGY INC. ANNOUNCES APPROVAL FOR RENEWAL OF NORMAL COURSE ISSUER BID

SURGE ENERGY INC. CONFIRMS JULY 2026 DIVIDENDJune 15, 2026 6:00 AM
PR Newswire (Canada) CALGARY, AB, June 15, 2026 /CNW/ - Surge Energy Inc. ("Surge" or the "Company") (TSX: SGY) confirms that a cash dividend to be paid on July 15, 2026, in respect of June 2026 production, for the shareholders of record on June 30, 2026, will be $0.043333 per share. The dividend is an eligible dividend for the purposes of the Income Tax Act (Canada).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.Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release. SOURCE Surge Energy Inc. Original: SURGE ENERGY INC. CONFIRMS JULY 2026 DIVIDEND

SURGE ENERGY INC. ANNOUNCES INCREASE TO 2026 PRODUCTION GUIDANCE; EXPANDS SECOND HALF 2026 DRILLING AND WATERFLOOD CAPITAL PROGRAMJune 1, 2026 3:08 PM
PR Newswire (Canada) CALGARY, AB, June 1, 2026 /CNW/ - Surge Energy Inc. ("Surge" or the "Company") (TSX: SGY) is pleased to announce that its Board of Directors has approved an expanded second half 2026 capital program, including increased waterflood spending and incremental production growth. Additionally, the Company has increased its 2026 exit production rate guidance from 23,000 boepd to 24,000 boepd.2026 PRODUCTION GUIDANCE INCREASE AND CAPITAL PROGRAM EXPANSIONThe conflict between the United States and Iran continues in the Middle East, restricting oil flows through the Strait of Hormuz and contributing to significant drawdowns in global crude inventories. These macro events, combined with the ongoing Russia/Ukraine conflict, are driving a "higher for longer" crude oil price scenario than many market participants were projecting.As a result of Surge's significant financial exposure to rising crude oil prices, together with the Company's strong balance sheet, the Company is generating much higher free cash flow ("FCF") in 2026 as compared to Management's budgeted crude oil price assumption of US$65 WTI per barrel. Further, based on Surge's independent reserve report for the year ended December 31, 2025, prepared by GLJ Ltd. ("GLJ"), the Company's net asset value ("NAV")1, when run at US$75 WTI flat pricing, is $11.04 per share for total proved reserves, and $17.10 per share for proven and probable reserves. On this basis, Management is currently allocating up to $5 million per month towards share buybacks under the Company's existing Normal Course Issuer Bid ("NCIB").In addition, given the significant increase in forward crude oil prices, together with Surge's deep (>12 year) inventory of more than 900 internally identified drilling locations2, Surge's Board of Directors and Management have now approved an expansion of the Company's 2026 capital program to add incremental production per share growth in the second half of the year. This expansion of Surge's 2H/26 capital program is comprised of additional drilling in the Sparky and SE Saskatchewan core areas, together with additional waterflood capital, as compared to the current 2026 budget.Accordingly, Management forecasts that the Company's 2026 exit production guidance will increase by over four percent, to 24,000 boepd (89 percent liquids), an increase of 1,000 boepd as compared to the Company's previous 2026 production guidance of 23,000 boepd (88 percent liquids).In this regard, Surge's Board of Directors has approved an increase to the Company's 2026 capital program, from $150 million to $175 million. This $25 million increase in the 2026 capital budget will be allocated as follows:Additional drilling capital of $16 million:The Company plans to drill an additional 8 gross (8.0 net) wells, comprised of four single leg frac'ed and two open hole multi-lateral ("OHML") wells in the Sparky core area, and two OHML wells in the SE Saskatchewan core area; andAcceleration of $9 million in additional waterflood projects.The 1,000 boepd increase to Surge's 2026 production guidance, from the previously budgeted 23,000 boepd, provides incremental production efficiencies on the expanded second half 2026 capital program of approximately $16,000 per flowing boe, based on the $16 million of incremental drilling capital. With internally estimated six month well payouts associated with the 8.0 gross (8.0 net) incremental drills in the second half of 2026, the Company expects that this drilling program will pay out by year-end 2026, based on current strip WTI crude oil prices, while providing incremental FCF to Surge in 2027 and beyond.The $9 million expansion in waterflood capital represents a 75 percent increase in the Company's 2026 waterflood capital (from the initial budget of $12 million) to $21 million. Incremental waterflood capital will be allocated to the further expansion of Surge's proven horizontal frac'ed waterflood program in the Provost region of the Sparky core area. Additionally, the Company is increasing the number of dedicated injectors drilled in Surge's OHML waterflood pilot at its Hope Valley Sparky discovery from five to 10.REVISED 2026 BUDGET CAPITAL AND OPERATING ESTIMATESUsing realized 2026 WTI pricing through May, combined with forward strip pricing for the remainder of the year, WTI prices in 2026 are currently forecasted to average approximately US$85. On this basis, Surge has provided revised 2026 guidance, inclusive of the 1,000 boepd growth wedge, using an average crude oil price of US$80 WTI price for 2026. The following chart shows the Company's revised 2026 capital and operating estimates, as compared to the initial 2026 budget:2026 CAPITAL AND OPERATING ESTIMATESORIGINAL GUIDANCE @ US $65 WTIaREVISED GUIDANCE @ US $80 WTIbExit 2026 production23,000 boepd (88% liquids)24,000 boepd (89% liquids)Average 2026 production23,000 boepd (88% liquids)23,375 boepd (89% liquids)2026(e) Exploration and development expenditures$150 million$175 million2026(e) Adjusted Funds Flowc$265 million$335 millionPer share$2.68 per share$3.39 per share2026(e) Cash flow from operating activitiesd$245 million$320 millionPer share$2.47 per share$3.24 per share2026(e) Free cash flowc$95 million$145 millionPer share$0.96 per share$1.47 per share2026(e) Base dividend$51.5 million$51.5 millionPer share$0.52 per share$0.52 per share2026(e) Royalties as a % of petroleum and natural gas revenue17.5 - 18.0%19.0 %2026(e) Net operating expensesc$18.00 - $18.50 per boe$18.00 - $18.50 per boe2026(e) Transportation expenses$1.15 - $1.35 per boe$1.15 - $1.35 per boe2026(e) General & administrative expenses$2.50 - $2.70 per boe$2.50 - $2.70 per boe2026(e) Interest expenses$2.50 - $2.75 per boe$2.50 - $2.75 per boe$1.2 billion in tax pools (providing an estimated 4-year tax horizon at US $80 WTI)a - Pricing Assumptions: US$65 WTI, US$12.00 WCS differential, US$4.00 EDM differential, $0.715 CAD/USD FX and $2.95 AECO. Per share amounts
calculated using 99.0 million common shares outstanding as at September 30, 2025.b - Pricing Assumptions: US$80 WTI, US$14.00 WCS differential, US$1.50 EDM differential, $0.73 CAD/USD FX and $2.25 AECO. Per share amounts 
calculated using 98.8 million common shares outstanding as at March 31, 2026.c - This is a non-GAAP and other financial measure. See the Non-GAAP and Other Financial Measures advisory herein. "GAAP" is defined as generally accepted accounting principles.d - Includes current hedge positions and assumes a nil change in non-cash working capital.FREE CASH FLOW ALLOCATIONBased on budgeted average US$80 WTI crude oil prices for 2026, Surge anticipates generating adjusted funds flow ("AFF") of $335 million, and cash flow from operating activities of $320 million3. In addition to the revised four percent exit production growth wedge forecast for 2026, Surge also anticipates generating FCF of $145 million in 2026, which represents a 15 percent FCF yield4,5 for shareholders of the Company. Management anticipates delivering this FCF to shareholders over the course of 2026 through the following:$51 million in annual base dividend payments ($0.52 per share, per annum);Share repurchases of approximately $30 to $40 million; andAdditional Net Debt5 reduction.ABOUT SURGE ENERGYSurge 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.FORWARD LOOKING STATEMENTS:This press release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.More particularly, this press release contains statements concerning: Surge's declared focus and primary goals; Surge's expectation that strong drilling and waterflood results in the Company's Sparky and SE Saskatchewan core areas will continue to drive production; Surge's expectation that it has more than 12 years of development drilling; Management's 2026 updated guidance estimates; crude oil fixed price hedges protecting the Company's 2026 FCF profile; share repurchases under the Company's NCIB, including amounts and timing thereof; the allocation of FCF to a combination of increased share buybacks under the Company's NCIB and continued net debt reduction; the expectation that Surge will continue to deliver attractive shareholder returns in 2026 and beyond based on its key corporate fundamentals; Management's updated 2026 exit production guidance estimates; Surge's 2026 capital program and focus; the Company's evaluation of an expansion of the Company's 2026 capital program and allocation thereof; Surge's planned 2026 drilling program and focus, including expectations regarding the number of wells to be drilled and the types thereof, including the Company's expectation that it will drill an additional 8 gross (8.0 net) wells; Surge's expanded waterflood pilot in the greater Hope Valley area and anticipated update on its OHML waterflood pilot; Surge's intention to have a dedicated rig drilling multi-lateral wells in Hope Valley for the entire year; Surge's estimates and forecasts related to the 2026 budget capital and operating estimates; Surge's expectations with respect to its FCF allocation, including expectations regarding AFF, cash flow from operating activities, FCF and FCF yield; Surge's reserves, future net revenue, future development capital and reserve life index; Surge continuing to execute an active drilling program at both the Sparky and SE Saskatchewan core areas during the first half of 2026 and the number of wells to be drilled thereat; expectations regarding Surge's proved and probable reserves estimates and locations; Surge's hedging program and its ability to protect the Company's 2026 capital program and dividend; Surge's continued outlook; Management's belief that Surge is well positioned to continue to deliver attractive shareholder returns; and Management's expectations regarding Surge's 2026 average production, AFF, cash flow from operating activities, dividends, drilling inventory and locations, annual corporate decline rates, tax pools and tax horizon.The forward-looking statements are based on certain key expectations and assumptions made by Surge, including expectations and assumptions regarding the performance of existing wells and success obtained in drilling new wells; anticipated expenses, cash flow and capital expenditures; that success of Surge's hedging program and ability to continue to maintain its hedging program; the ability of the Company to return capital to its shareholders through a combination of the payment of its dividend and share buybacks under its NCIB; the Company's critical accounting estimates and 2026 guidance; the application of regulatory and royalty regimes; prevailing commodity prices and economic conditions; development and completion activities; the performance of new wells; the successful implementation of waterflood programs; the availability of and performance of facilities and pipelines; the geological characteristics of Surge's properties; the successful application of drilling, completion and seismic technology; the determination of decommissioning liabilities; prevailing weather conditions; exchange rates; licensing requirements; the impact of completed facilities on operating costs; the availability and costs of capital, labour and services; the ability to continue borrowing under the Company's credit facilities and the syndicate's interpretation of the Company's obligations thereunder; ability of the Company to continue to make repurchases under its NCIB and the timing thereof; ability of the Company to obtain alternative forms of debt and equity financing on terms acceptable to the Company to meet its capital requirements; and the creditworthiness of industry partners.Although Surge believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Surge can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the condition of the global economy, including trade, public health, international conflict and other geopolitical tensions and events (including war, military action, terrorism, trade disputes, and international responses thereto); risks associated with the oil and gas industry in general (e.g. operational risks in development, exploration and production); delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks); commodity price and exchange rate fluctuations and constraint in the availability of services, adverse weather or break-up conditions; the imposition or expansion of tariffs imposed by domestic and foreign governments or the imposition of other restrictive trade measures, retaliatory or countermeasures implemented by such governments, including the introduction of regulatory barriers to trade and the potential effect on the demand and/or market price for Surge's products and/or otherwise adversely affects Surge; hedging risk; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; and failure to obtain the continued support of the lenders under Surge's bank line. Certain of these risks are set out in more detail in Surge's AIF dated March 4, 2026 and in Surge's MD&A for the year ended December 31, 2025, both of which have been filed on SEDAR+ and can be accessed at www.sedarplus.ca.The guidance in respect of the Company's expectations of AFF, FCF and Net Operating Expense in 2026 herein, and other financial metrics of a forward-looking nature (as may be identified herein by "2026e" or otherwise), may be considered to be a financial outlook for the purposes of applicable Canadian securities laws. Such information is based on assumptions about future events, including economic conditions and proposed courses of action, based on Management's assessment of the relevant information currently available, and which may become available in the future. These projections constitute forward-looking statements and are based on several material factors and assumptions set out above. Actual results may differ significantly from such projections. See above for a discussion of certain risks that could cause actual results to vary. The financial outlook contained herein has been approved by Management as of the date of this investor presentation. Readers are cautioned that any such financial outlook contained herein should not be used for purposes other than those for which it is disclosed herein. Surge and its Management believe that the financial outlook contained herein has been prepared based on assumptions that are reasonable in the circumstances, reflecting Management's best estimates and judgments, and represents, to the best of Management's knowledge and opinion, expected and targeted financial results. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.The forward-looking statements contained in this press release are made as of the date hereof and Surge undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.Oil and Gas AdvisoriesBarrel of Oil EquivalencyThe term "boe" means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. "Boe/d" and boepd" mean barrel of oil equivalent per day. Bbl means barrel of oil and "bopd" means barrels of oil per day."NGLs" means natural gas liquids.Oil and Gas MetricsThis press release contains certain oil and gas metrics and defined terms which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar metrics/terms presented by other issuers and may differ by definition and application. All oil and gas metrics/terms used in this document are defined below:"Original oil in place (OOIP)" refers to the initial volume of oil present in the reservoir at the time of its formation."Capital payout" or "payout per well", is the time period for the operating netback of a well to equate to the individual cost of drilling, completing and equipping the well. Management uses capital payout and payout per well as a measure of capital efficiency of a well to make capital allocation decisions."Decline" is the amount existing production decreases year over year (March 2025 to March 2026), without new drilling. GLJ's 2025YE reserves have a Proved Developed Producing decline of 25 percent and a Proven Plus Probable Developed Producing decline of 23 percent."Net Asset Value (NAV)" is calculated as reserve value discounted at 10% on a BTax basis, less the Company's net debt, a non-GAAP financial measure, at December 31, 2025 of $220.6 million and is divided by 98.9 million common shares outstanding as at December 31, 2025.Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare our operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes.Drilling InventoryThis press release discloses drilling locations in two categories: (i) booked locations; and (ii) unbooked locations. Booked locations are proved locations and probable locations derived from an external evaluation using standard practices as prescribed in the Canadian Oil and Gas Evaluations Handbook and account for drilling locations that have associated proved and/or probable reserves, as applicable.Unbooked locations are internal estimates based on prospective acreage and assumptions as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves or resources. Unbooked locations have been identified by Surge's internal Engineers and Geologists (and have been reviewed by Surge's Qualified Reserve Evaluators) as an estimation of our multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Company will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which the Company actually drills wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, the majority of other unbooked drilling locations are farther away from existing wells where Management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.Assuming a January 1, 2026 reference date, the Company will have over >1,000 gross (>900 net) drilling locations identified herein; of these >600 gross (>525 net) are unbooked locations. Of the 361 net booked locations identified herein, 282 net are Proved locations and 78 net are Probable locations based on GLJ's 2025YE reserves. Assuming an average number of net wells drilled per year of 65, Surge's >900 net locations provide 13 years of drilling.Assuming a January 1, 2026 reference date, the Company will have over >500 gross (>500 net) Sparky Core area drilling locations identified herein; of these >300 gross (>300 net) are unbooked locations. Of the 191 net booked locations identified herein, 142 net are Proved locations and 50 net are Probable locations based on GLJ's 2025YE reserves. Assuming an average number of wells drilled per year of 35, Surge's >500 net locations provide >14 years of drilling.Assuming a January 1, 2026 reference date, the Company will have over >325 gross (>300 net) SE Saskatchewan drilling locations identified herein; of these >170 gross (>145 net) are unbooked locations. Of the 143 net booked locations identified herein, 115 net are Proved locations and 29 net are Probable locations based on GLJ's 2025YE reserves. Assuming an average number of wells drilled per year of 30, Surge's >300 net locations provide >10 years of drilling.Assuming a January 1, 2026 reference date, the Company will have over 23 gross (17.2 net) State A Frobisher SE Saskatchewan drilling locations identified herein; of these 14 gross (8.7 net) are unbooked locations. Of the 9 net booked locations identified herein, 7 net are Proved locations and 2 net are Probable locations based on GLJ's 2025YE reserves.Surge's internally used type curves were constructed using a representative, factual and balanced analog data set, as of January 1, 2025. All locations were risked appropriately, and EUR's were measured against OOIP estimates to ensure a reasonable recovery factor was being achieved based on the respective spacing assumption. Other assumptions, such as capital, operating expenses, wellhead offsets, land encumbrances, working interests and NGL yields were all reviewed, updated and accounted for on a well-by-well basis (and reviewed by Surge's Qualified Reserve Evaluators). All type curves fully comply with Part 5.8 of the Companion Policy 51 – 101CP.Non-GAAP and Other Financial MeasuresThis press release includes references to non-GAAP and other financial measures used by the Company to evaluate its financial performance, financial position or cash flow. These specified financial measures include capital management measures, non-GAAP financial measures and non-GAAP ratios and are not defined by IFRS Accounting Standards ("IFRS") and therefore are referred to as non-GAAP and other financial measures. Certain secondary financial measures in this press release are not prescribed by GAAP. These non-GAAP and other financial measures are included because Management uses the information to analyze business performance, cash flow generated from the business, leverage and liquidity, resulting from the Company's principal business activities and it may be useful to investors on the same basis. None of these measures are used to enhance the Company's reported financial performance or position. The non-GAAP and other financial measures do not have a standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to similar measures presented by other issuers. They are common in the reports of other companies but may differ by definition and application. All non-GAAP and other financial measures used in this document are defined below:Adjusted Funds FlowAFF is a capital management measure. The Company adjusts cash flow from operating activities in calculating AFF for changes in non-cash working capital, decommissioning expenditures, and cash settled transaction and other costs (income). Management believes the timing of collection, payment or incurrence of these items involves a high degree of discretion and as such may not be useful for evaluating Surge's cash flows.Changes in non-cash working capital are a result of the timing of cash flows related to accounts receivable and accounts payable, which management believes reduces comparability between periods. Management views decommissioning expenditures predominately as a discretionary allocation of capital, with flexibility to determine the size and timing of decommissioning programs to achieve greater capital efficiencies and as such, costs may vary between periods. Transaction and other costs (income) represent expenditures associated with property acquisitions and dispositions, debt restructuring and employee severance costs as well as other income, which management believes do not reflect the ongoing cash flows of the business, and as such reduces comparability. Each of these expenditures, due to their nature, are not considered principal business activities and vary between periods, which management believes reduces comparability.Free Cash Flow & Free Cash Flow YieldFCF is a non-GAAP financial measure. FCF is calculated as cash flow from operating activities, adjusted for changes in non-cash working capital, decommissioning expenditures, and cash settled transaction and other costs (income), less expenditures on property, plant and equipment. Management uses free cash flow to determine the amount of funds available to the Company for future capital allocation decisions.FCF yield is a non-GAAP ratio, calculated as free cash flow divided by the number of basic shares outstanding, divided by the Company's share price at the date indicated herein. Management uses this measure as an indication of the cash flow available for return to shareholders based on current share prices.Net DebtNet debt is a capital management measure, calculated as bank debt, senior unsecured notes, term debt, plus the liability component of the convertible debentures plus current assets, less current liabilities, however, excluding the fair value of financial contracts, decommissioning obligations, and lease and other obligations. This metric is used by management to analyze the level of debt in the Company including the impact of working capital, which varies with the timing of settlement of these balances.Net Operating Expenses & Net Operating Expenses per boeNet operating expenses is a non-GAAP financial measure, determined by deducting processing income, primarily generated by processing third party volumes at processing facilities where the Company has an ownership interest. It is common in the industry to earn third party processing revenue on facilities where the entity has a working interest in the infrastructure asset. Under IFRS this source of funds is required to be reported as revenue. However, the Company's principal business is not that of a midstream entity whose activities are dedicated to earning processing and other infrastructure payments. Where the Company has excess capacity at one of its facilities, it will look to process third party volumes as a means to reduce the cost of operating/owning the facility. As such, third party processing revenue is netted against operating costs when analyzed by management.Net operating expenses per boe is a non-GAAP ratio, calculated as net operating expenses divided by total barrels of oil equivalent produced during a specific period of time.Operating NetbackOperating netback is a non-GAAP financial measure, calculated as petroleum and natural gas revenue and processing income, less royalties, realized gain (loss) on commodity and FX contracts, operating expenses, and transportation expenses. This metric is used by management to evaluate the Company's ability to generate cash margin.Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.______________________________1.See Oil and Gas Advisories.2.See Drilling Inventory.3.Pricing Assumptions: US$80 WTI, US$14.00 WCS differential, US$1.50 EDM differential, $0.73 CAD/USD FX and $2.25 AECO.4.Calculated as $145 million of FCF divided by a market cap of $938 million as at May 29, 2026.5.This is a non-GAAP and other financial measure. See the Non-GAAP and Other Financial Measures advisory herein. "GAAP" is defined as generally accepted accounting principles.  SOURCE Surge Energy Inc. Original: SURGE ENERGY INC. ANNOUNCES INCREASE TO 2026 PRODUCTION GUIDANCE; EXPANDS SECOND HALF 2026 DRILLING AND WATERFLOOD CAPITAL PROGRAM

SURGE ENERGY INC. CONFIRMS JUNE 2026 DIVIDENDMay 15, 2026 6:00 AM
PR Newswire (Canada) CALGARY, AB, May 15, 2026 /CNW/ - Surge Energy Inc. ("Surge" or the "Company") (TSX: SGY) confirms that a cash dividend to be paid on June 15, 2026, in respect of May 2026 production, for the shareholders of record on May 31, 2026, will be $0.043333 per share.The dividend is an eligible dividend for the purposes of the Income Tax Act (Canada).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.Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release. SOURCE Surge Energy Inc. Original: SURGE ENERGY INC. CONFIRMS JUNE 2026 DIVIDEND

Surge Energy Inc. Announces Annual General Meeting Voting ResultsMay 13, 2026 6:50 PM
PR Newswire (Canada) CALGARY, AB, May 13, 2026 /CNW/ - Surge Energy Inc. (the "Company" or "Surge") (TSX: SGY) announces that at its annual meeting of shareholders held on May 13, 2026 the following nine director nominees were elected:
Votes ForVotes Withheld
#%#%James Pasieka25,360,68099.37160,5530.63Marion Burnyeat23,949,14693.841,572,0876.16Myles Bosman25,397,99399.52123,2400.48Paul Colborne25,402,43199.53118,8020.47Daryl Gilbert25,392,38199.50128,8520.50Michelle Gramatke24,726,80396.89794,4303.11Ryan Gritzfeldt25,401,86399.53119,3700.47Robert Leach24,698,85396.78822,3803.22Allison Maher25,367,35499.40153,8790.60In addition, the shareholders also approved the fixing of directors at Meeting at nine (9).The shareholders also approved the appointment of KPMG LLP, Chartered Accounts as auditors for the ensuing year.Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release. SOURCE Surge Energy Inc. Original: Surge Energy Inc. Announces Annual General Meeting Voting Results

SURGE ENERGY INC. ANNOUNCES FIRST QUARTER FINANCIAL RESULTS AND OPERATIONAL UPDATESMay 6, 2026 5:44 PM
PR Newswire (Canada) CALGARY, AB, May 6, 2026 /CNW/ - Surge Energy Inc. ("Surge" or the "Company") (TSX: SGY) is pleased to announce financial and operating results for the quarter ended March 31, 2026, as well as an update on Surge's latest operational achievements.Select financial and operating information is outlined below and should be read in conjunction with the Company's unaudited condensed interim financial statements and management's discussion and analysis for the three months ended March 31, 2026, available at www.sedarplus.ca and on Surge's website at www.surgeenergy.ca.Q1/26 HIGHLIGHTSStrong drilling and waterflood results in the Company's Sparky and SE Saskatchewan core areas continue to drive production outperformance, as compared to Surge's budget guidance press released on November 5, 2025. In Q1/26, production averaged 23,893 boepd (89 percent liquids), well above the Company's budgeted average 2026 production estimate of 23,000 boepd.During the first quarter of 2026, Surge generated adjusted funds flow ("AFF")1 of $70.9 million ($0.72 per share), and cash flow from operating activities of $60.0 million, with WTI crude oil prices averaging US$72.17 per barrel in the quarter.In Q1/26, the Company allocated $44.6 million of capital to property, plant, and equipment expenditures, an 18 percent reduction as compared to the $54.4 million spent in Q1/25. This reduction in capital expenditures in Q1/26 as compared to Q1/25, highlights Surge's capital efficiencies and continued production outperformance. On this basis, free cash flow ("FCF")1 generated by Surge in Q1/26 was $26.3 million, which represents 37 percent of AFF generated in the quarter.MESSAGE TO SHAREHOLDERSSurge is a publicly traded intermediate oil company with a highly focused, conventional, light and medium gravity crude oil asset and opportunity base, with an internally estimated drilling inventory that supports more than 12 years of development drilling2, together with waterflood upside. The focus of Surge's Management and Board of Directors is to maximize shareholder returns from the Company's strong FCF base, through a combination of: A sustainable base dividend;Strategic share buybacks;Debt reduction;Organic production per share growth; andAccretive acquisitions.On February 28, 2026, the US and Israel launched coordinated attacks on Iran, targeting infrastructure and key leaders. Iran has since retaliated by closing the Strait of Hormuz – a strategic, narrow waterway, which approximately 20 percent of the world's daily crude oil production is transported through. As a result of this conflict, world crude oil prices have continued to fluctuate, increasing dramatically from US$62 WTI per barrel on February 17, 2026, to spot prices of US$95 WTI today.The US and Iran have been conducting negotiations in recent weeks, attempting to achieve a permanent settlement of this conflict. During this time, the Strait of Hormuz has been blockaded by the US and remains largely closed, putting extreme pressure on existing global crude oil inventories.Given the significant increase in world crude oil prices since the Company's 2026 capital and operating budget was released on November 5, 2025, below are Surge's updated 2026 guidance estimates at US$65 (initial budget case), US$75, and US$85 WTI per barrel, highlighting the Company's significant financial exposure to rising crude oil prices:Guidance@ US $65 WTIa@ US $75 WTIa@ US $85 WTIaAverage 2026 production
23,000 boepd (88% liquids)
2026(e) Exploration and development expenditures$150 million$150 million$150 million2026(e) Adjusted Funds Flow$265 million$315 million$365 millionPer share$2.68 per share$3.19 per share$3.69 per share2026(e) Cash flow from operating activitiesb$245 million$295 million$345 millionPer share$2.47 per share$2.98 per share$3.49 per share2026(e) Free cash flow$95 million$145 million$195 millionPer share$0.96 per share$1.47 per share$1.97 per share2026(e) Base dividend
$51.5 million
Per share
$0.52 per share
2026(e) Royalties as a % of petroleum and natural gas revenue17.5% - 18.0%19.0% - 19.5%19.5% - 20.0%2026(e) Net operating expensesc
$18.00 - $18.50 per boe
2026(e) Transportation expenses
$1.15 - $1.35 per boe
2026(e) General & administrative expenses
$2.50 - $2.70 per boe
2026(e) Interest expenses
$2.50 - $2.75 per boe
a - Pricing assumptions: US$12.00 WCS differential, US$4.00 EDM differential, $0.715 CAD/USD FX and $2.95 AECO.b - Includes current hedge positions and assumes a nil change in non-cash working capital.c - This is a non-GAAP and other financial measure. See the Non-GAAP and Other Financial Measures advisory herein. "GAAP" is defined as generally accepted accounting principles.As a result of Surge's significant financial exposure to rising crude oil prices, together with the Company's strong balance sheet, the Company is generating significantly higher FCF in 2026 as compared to Management's budgeted crude oil price assumption of US$65 WTI per barrel. Further, based on Surge's independent reserve report for the year ended December 31, 2025, prepared by GLJ Ltd., the Company's net asset value ("NAV")3, when run at US$75 WTI flat pricing, is $11.04 per share for total proved reserves, and $17.10 per share for proven and probable reserves.On this basis, Management is currently allocating FCF above budgeted levels to a combination of increased share buybacks under the Company's existing Normal Course Issuer Bid ("NCIB") and continued net debt reduction. Surge is currently budgeting for up to $5 million per month in share buybacks, with the remaining FCF allocated to debt reduction.In addition, considering the significant increase in forward crude oil prices, together with Surge's deep (>12 year) inventory of more than 900 internally identified drilling locations2, Surge's Board and Management are evaluating an expansion of the Company's 2026 capital program to add incremental production per share growth in the second half of the year. This potential expansion of Surge's 2H/26 capital program would be comprised of additional drilling and waterflood capital as compared to the current 2026 budget.Q1/26 FINANCIAL HIGHLIGHTSExceeded budgeted 2026 production estimates, producing an average of 23,893 boepd in Q1/26, compared to budgeted average production of 23,000 boepd;Generated $70.9 million of AFF ($0.72 per share basic) and cash flow from operating activities of $60.0 million, with WTI crude oil prices averaging US$72.17 per barrel during the quarter;Generated $26.3 million of FCF in Q1/26 ($0.27 per share basic);Delivered total shareholder returns from Q1/25 through Q1/26 of $88.2 million (32% of AFF over the period), comprised of:$51.5 million of cash dividends through the Company's $0.52 per share annual dividend (paid monthly);$32.7 million of net debt reduction; and$4.0 million of share repurchases under the Company's NCIB.Distributed cash dividends to shareholders in the amount of $12.9 million in Q1/26, representing 18 percent of Q1/26 AFF of $70.9 million;Reduced net debt by $32.7 million from $246.0 million as at March 31, 2025, to $213.3 million as at March 31, 2026, a decrease of 13 percent;Annualized Q1/26 AFF represented 0.75 times net debt as at March 31, 2026; andMaintained an undrawn $250 million first lien credit facility.FINANCIAL AND OPERATING HIGHLIGHTSFINANCIAL AND OPERATING HIGHLIGHTSThree Months Ended March 31,($000s except per share and per boe)20262025% ChangeFinancial highlights


Oil sales153,186157,206(3) %NGL sales2,7051,129140 %Natural gas sales2,1202,387(11) %Total petroleum and natural gas revenue158,011160,722(2) %Cash flow from operating activities59,97283,470(28) %Per share - basic ($)0.610.83(27) %Per share diluted ($)0.590.82(28) %Adjusted funds flowa70,92580,107(11) %Per share - basic ($)a0.720.80(10) %Per share diluted ($)0.690.79(13) %Net income (loss)(24,680)8,246nmbPer share basic ($)(0.25)0.08nmPer share diluted ($)c(0.25)0.08nmExpenditures on property, plant and equipment44,61854,399(18) %Net acquisitions and dispositions18044nmNet capital expenditures44,79854,443(18) %Net debta, end of period213,329246,003(13) %



Operating highlights


Production:


Oil (bbls per day)20,72020,673— %NGLs (bbls per day)622248151 %Natural gas (mcf per day)15,30615,877(4) %Total (boe per day) (6:1)23,89323,5671 %Average realized price (excluding hedges):


Oil ($ per bbl)82.1584.49(3) %NGL ($ per bbl)48.2950.53(4) %Natural gas ($ per mcf)1.541.67(8) %



Netback ($ per boe)


Petroleum and natural gas revenue73.4875.77(3) %Realized gain (loss) on commodity and FX contracts(2.69)0.67nmRoyalties(12.66)(13.42)(6) %Net operating expensesa(18.70)(18.78)— %Transportation expenses(1.12)(1.16)(3) %Operating netbacka38.3143.08(11) %G&A expense(2.67)(2.64)1 %Interest expense(2.66)(2.68)(1) %Adjusted funds flowa32.9837.76(13) %







Common shares outstanding, end of period98,84199,523(1) %Weighted average basic shares outstanding98,85399,979(1) %Stock-based compensation dilutionc3,4071,263170 %Weighted average diluted shares outstanding102,260101,2421 %



a This is a non-GAAP and other financial measure which is defined under Non-GAAP and Other Financial Measures.b The Company views this change calculation as not meaningful, or "nm".c Dilution is not reflected in the calculation of net loss for the three months ended March 31, 2026.Q1/26 OPERATIONS UPDATESurge's Q1/26 production averaged 23,893 boepd (89 percent liquids), well ahead of the Company's budgeted average 2026 production estimate of 23,000 boepd. This continued quarterly production outperformance is due to better than anticipated drilling and waterflood results in Surge's two core areas, highlighted by the ongoing drilling results at the Company's large Sparky discovery at Hope Valley.Surge's Q1/26 capital program was initiated with two rigs drilling in the Sparky core area and one rig drilling in the SE Saskatchewan core area. The Company's Q1/26 drilling program consisted of 18 gross (16.3 net) wells.  In the Sparky core area, 11 gross (11.0 net) wells were drilled, including two dedicated injector drills at Hope Valley.  In the SE Saskatchewan core area, 7 gross (5.3 net) wells were drilled.Sparky (Mannville) The development and delineation of Surge's large Hope Valley discovery continued in Q1/26 with the drilling of 4 gross (4.0 net) producing wells and two dedicated injectors. The Company began injection at its first horizontal open hole multi-lateral ("OHML") waterflood pilot in December of 2025.Subsequent to initiating the waterflood pilot at Hope Valley, the Company drilled two additional dedicated OHML injectors in early Q1/26 at the north end of Hope Valley. Additionally, Surge is currently drilling five dedicated injectors and five OHML producing wells at the center portion of the 37 section Hope Valley pool. On this basis, the Company will have an expanded waterflood pilot of eight dedicated injectors in the greater Hope Valley area. Management anticipates having a further update on its OHML waterflood pilot at Hope Valley in 2H/26.At Provost/Cadogan, Surge continues to deliver better than type-curve Sparky wells using single leg multi-frac technology, utilizing additional frac stages combined with high volume lift.SE Saskatchewan (Frobisher)In SE Saskatchewan, Surge continued its momentum on this operated light oil asset, with Q1/26 drilling focused on multi-lateral wells targeting the Frobisher horizon at Steelman, drilling 6 gross (5.0 net) wells in this area during the first quarter.  Surge's Frobisher drilling program continues to deliver strong production results for the Company in the SE Saskatchewan core area.  Based on public data, Surge has delivered an average IP90 production rate of 187 bopd for the 88 Frobisher wells the Company has drilled since January 2022 (>4 years), as per the following chart:OUTLOOK: PREMIUM ASSET QUALITY DRIVES SUPERIOR RETURNSSurge's premium, conventional crude oil asset base is now more than 92 percent focused in two of the top five crude oil plays in Canada4 based on per well payout economics in its Sparky (>14,000 boepd; 90 percent medium gravity oil and liquids) and SE Saskatchewan (~7,500 boepd; 90 percent light oil and liquids) core areas.In light of ongoing geopolitical uncertainty, pursuant to the Company's ongoing, systematic hedging program, Surge has been strategically locking in crude oil hedge positions for the balance of 2026 and early 2027 at progressively higher crude oil prices, in order to protect the Company's 2026 capital program and dividend.  Surge will continue to deliver attractive shareholder returns in 2026 and beyond based on the key corporate fundamentals set forth below:Estimated 2026 average production of 23,000 boepd (88 percent liquids);Estimated 2026 AFF of $315 million5 ($3.19 per share);Estimated 2026 cash flow from operating activities of $295 million5 ($2.98 per share);A $51.5 million annual base cash dividend ($0.52 per share annual dividend, paid monthly), which represents approximately 16 percent of the Company's forecasted 2026 AFF of $315 million;An independently engineered total proved and probable NAV per share of $17.10, based on a US$75 WTI flat price forecast;An undrawn $250 million first lien credit facility as at March 31, 2026;An internally estimated 25 percent annual corporate decline3;More than 900 (net) internally estimated drilling locations, providing a 12 year drilling inventory2; and$1.2 billion in tax pools (representing an estimated 4 year tax horizon)5.________________________1. This is a non-GAAP and other financial measure. See the Non-GAAP and Other Financial Measures advisory herein. "GAAP" is defined as generally accepted accounting principles.2. See Drilling Inventory.3. See Oil and Gas Advisories.4. Source: Peters & Co. (January 2026 North American Crude Oil and Natural Gas Plays).5. Based on the following pricing assumptions: US$75 WTI, US$12.00 WCS differential, US$4.00 EDM differential, $0.715 CAD/USD FX and $2.95 AECO. Sensitivities are inclusive of the Company's existing hedge positions as at the date of this release.FORWARD LOOKING STATEMENTS:This press release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.More particularly, this press release contains statements concerning: Surge's declared focus and primary goals; Surge's expectation that strong drilling and waterflood results in the Company's Sparky and SE Saskatchewan core areas will continue to drive production; Surge's expectation that it has more than 12 years of development drilling; Management's 2026 updated guidance estimates; crude oil fixed price hedges protecting the Company's 2026 free cash flow profile; share repurchases under the Company's NCIB; the allocation of FCF to a combination of increased share buybacks under the Company's NCIB and continued net debt reduction; the Company's evaluation of an expansion of the Company's 2026 capital program; the expectation that Surge will continue to deliver attractive shareholder returns in 2026 and beyond based on its key corporate fundamentals; the repeatability and consistency of drilling results at Hope Valley and moving this asset the full development phase; increasing estimated ultimate recoveries ("EUR") at the Sparky (Manville) crude oil discovery; Surge's planned 2026 drilling program and focus, including expectations regarding the number of wells to be drilled and the types thereof; Surge's expanded waterflood pilot in the greater Hope Valley area and anticipated update on its OHML waterflood pilot; Surge's 2026 capital program and focus; Surge's intention to have a dedicated rig drilling multi-lateral wells in Hope Valley for the entire year; Surge's reserves, future net revenue, future development capital and reserve life index; Surge continuing to execute an active drilling program at both the Sparky and SE Saskatchewan core areas during the first half of 2026 and the number of wells to be drilled thereat; expectations regarding Surge's proved and probable reserves estimates and locations; Surge's hedging program and its ability to protect the Company's 2026 capital program and dividend; Surge's continued outlook; Management's belief that Surge is well positioned to continue to deliver attractive shareholder returns; and Management's expectations regarding Surge's 2026 average production, AFF, cash flow from operating activities, dividends, drilling inventory and locations, annual corporate decline rates, tax pools and tax horizon.The forward-looking statements are based on certain key expectations and assumptions made by Surge, including expectations and assumptions regarding the performance of existing wells and success obtained in drilling new wells; anticipated expenses, cash flow and capital expenditures; that success of Surge's hedging program and ability to continue to maintain its hedging program; the ability of the Company to return capital to its shareholders through a combination of the payment of its dividend and share buybacks under its NCIB; the Company's critical accounting estimates and 2026 guidance; the application of regulatory and royalty regimes; prevailing commodity prices and economic conditions; development and completion activities; the performance of new wells; the successful implementation of waterflood programs; the availability of and performance of facilities and pipelines; the geological characteristics of Surge's properties; the successful application of drilling, completion and seismic technology; the determination of decommissioning liabilities; prevailing weather conditions; exchange rates; licensing requirements; the impact of completed facilities on operating costs; the availability and costs of capital, labour and services; the ability to continue borrowing under the Company's credit facilities and the syndicate's interpretation of the Company's obligations thereunder; ability of the Company to continue to make repurchases under its NCIB and the timing thereof; ability of the Company to obtain alternative forms of debt and equity financing on terms acceptable to the Company to meet its capital requirements; and the creditworthiness of industry partners.Although Surge believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Surge can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the condition of the global economy, including trade, public health, international conflict and other geopolitical tensions and events (including war, military action, terrorism, trade disputes, and international responses thereto); risks associated with the oil and gas industry in general (e.g. operational risks in development, exploration and production); delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks); commodity price and exchange rate fluctuations and constraint in the availability of services, adverse weather or break-up conditions; the imposition or expansion of tariffs imposed by domestic and foreign governments or the imposition of other restrictive trade measures, retaliatory or countermeasures implemented by such governments, including the introduction of regulatory barriers to trade and the potential effect on the demand and/or market price for Surge's products and/or otherwise adversely affects Surge; hedging risk; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; and failure to obtain the continued support of the lenders under Surge's bank line. Certain of these risks are set out in more detail in Surge's AIF dated March 4, 2026 and in Surge's MD&A for the year ended December 31, 2025, both of which have been filed on SEDAR+ and can be accessed at www.sedarplus.ca.The guidance in respect of the Company's expectations of Adjusted Funds Flow, Free Cash Flow and Net Operating Expense in 2026 herein may be considered to be a financial outlook for the purposes of applicable Canadian securities laws. Such information is based on assumptions about future events, including economic conditions and proposed courses of action, based on Management's assessment of the relevant information currently available, and which may become available in the future. These projections constitute forward-looking statements and are based on several material factors and assumptions set out above. Actual results may differ significantly from such projections. See above for a discussion of certain risks that could cause actual results to vary. The financial outlook contained herein has been approved by Management as of the date of this investor presentation. Readers are cautioned that any such financial outlook contained herein should not be used for purposes other than those for which it is disclosed herein. Surge and its Management believe that the financial outlook contained herein has been prepared based on assumptions that are reasonable in the circumstances, reflecting Management's best estimates and judgments, and represents, to the best of Management's knowledge and opinion, expected and targeted financial results. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.The forward-looking statements contained in this press release are made as of the date hereof and Surge undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.Oil and Gas AdvisoriesBarrel of Oil EquivalencyThe term "boe" means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. "Boe/d" and "boepd" mean barrel of oil equivalent per day. Bbl means barrel of oil and "bopd" means barrels of oil per day. "NGLs" means natural gas liquids.Oil and Gas MetricsThis press release contains certain oil and gas metrics and defined terms which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar metrics/terms presented by other issuers and may differ by definition and application. All oil and gas metrics/terms used in this document are defined below:"Original oil in place (OOIP)" refers to the initial volume of oil present in the reservoir at the time of its formation."Capital payout" or "payout per well", is the time period for the operating netback of a well to equate to the individual cost of drilling, completing and equipping the well. Management uses capital payout and payout per well as a measure of capital efficiency of a well to make capital allocation decisions."Decline" is the amount existing production decreases year over year (March 2025 to March 2026), without new drilling. GLJ's 2025YE reserves have a Proved Developed Producing decline of 25 percent and a Proven Plus Probable Developed Producing decline of 23 percent."Net Asset Value (NAV)" is calculated as reserve value discounted at 10% on a BTax basis, less the Company's net debt, a non-GAAP financial measure, at December 31, 2025 of $220.6 million and is divided by 98.9 million common shares outstanding as at December 31, 2025.Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare our operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes.Drilling Inventory This press release discloses drilling locations in two categories: (i) booked locations; and (ii) unbooked locations. Booked locations are proved locations and probable locations derived from an external evaluation using standard practices as prescribed in the Canadian Oil and Gas Evaluations Handbook and account for drilling locations that have associated proved and/or probable reserves, as applicable.Unbooked locations are internal estimates based on prospective acreage and assumptions as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves or resources. Unbooked locations have been identified by Surge's internal Engineers and Geologists (and have been reviewed by Surge's Qualified Reserve Evaluators) as an estimation of our multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Company will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which the Company actually drills wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, the majority of other unbooked drilling locations are farther away from existing wells where Management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.Assuming a January 1, 2026 reference date, the Company will have over >1,000 gross (>900 net) drilling locations identified herein; of these >600 gross (>525 net) are unbooked locations. Of the 361 net booked locations identified herein, 282 net are Proved locations and 78 net are Probable locations based on GLJ's 2025YE reserves. Assuming an average number of net wells drilled per year of 65, Surge's >900 net locations provide 13 years of drilling.Assuming a January 1, 2026 reference date, the Company will have over >500 gross (>500 net) Sparky Core area drilling locations identified herein; of these >300 gross (>300 net) are unbooked locations. Of the 191 net booked locations identified herein, 142 net are Proved locations and 50 net are Probable locations based on GLJ's 2025YE reserves. Assuming an average number of wells drilled per year of 35, Surge's >500 net locations provide >14 years of drilling.Assuming a January 1, 2026 reference date, the Company will have over >325 gross (>300 net) SE Saskatchewan drilling locations identified herein; of these >170 gross (>145 net) are unbooked locations. Of the 143 net booked locations identified herein, 115 net are Proved locations and 29 net are Probable locations based on GLJ's 2025YE reserves.  Assuming an average number of wells drilled per year of 30, Surge's >300 net locations provide >10 years of drilling.Assuming a January 1, 2026 reference date, the Company will have over 23 gross (17.2 net) State A Frobisher SE Saskatchewan drilling locations identified herein; of these 14 gross (8.7 net) are unbooked locations. Of the 9 net booked locations identified herein, 7 net are Proved locations and 2 net are Probable locations based on GLJ's 2025YE reserves. Surge's internally used type curves were constructed using a representative, factual and balanced analog data set, as of January 1, 2025. All locations were risked appropriately, and EUR's were measured against OOIP estimates to ensure a reasonable recovery factor was being achieved based on the respective spacing assumption. Other assumptions, such as capital, operating expenses, wellhead offsets, land encumbrances, working interests and NGL yields were all reviewed, updated and accounted for on a well-by-well basis (and reviewed by Surge's Qualified Reserve Evaluators).  All type curves fully comply with Part 5.8 of the Companion Policy 51 – 101CP. Non-GAAP and Other Financial MeasuresThis press release includes references to non-GAAP and other financial measures used by the Company to evaluate its financial performance, financial position or cash flow. These specified financial measures include capital management measures, non-GAAP financial measures and non-GAAP ratios and are not defined by IFRS and therefore are referred to as non-GAAP and other financial measures. Certain secondary financial measures in this press release are not prescribed by GAAP. These non-GAAP and other financial measures are included because Management uses the information to analyze business performance, cash flow generated from the business, leverage and liquidity, resulting from the Company's principal business activities and it may be useful to investors on the same basis. None of these measures are used to enhance the Company's reported financial performance or position. The non-GAAP and other financial measures do not have a standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to similar measures presented by other issuers. They are common in the reports of other companies but may differ by definition and application. All non-GAAP and other financial measures used in this document are defined below, and as applicable, reconciliations to the most directly comparable GAAP measure for the period ended March 31, 2026, have been provided to demonstrate the calculation of these measures:Adjusted Funds Flow & Adjusted Funds Flow Per ShareAFF is a capital management measure. The Company adjusts cash flow from operating activities in calculating AFF for changes in non-cash working capital, decommissioning expenditures, and cash settled transaction and other costs (income). Management believes the timing of collection, payment or incurrence of these items involves a high degree of discretion and as such may not be useful for evaluating Surge's cash flows.Changes in non-cash working capital are a result of the timing of cash flows related to accounts receivable and accounts payable, which management believes reduces comparability between periods. Management views decommissioning expenditures predominately as a discretionary allocation of capital, with flexibility to determine the size and timing of decommissioning programs to achieve greater capital efficiencies and as such, costs may vary between periods. Transaction and other costs (income) represent expenditures associated with property acquisitions and dispositions, debt restructuring and employee severance costs as well as other income, which management believes do not reflect the ongoing cash flows of the business, and as such reduces comparability. Each of these expenditures, due to their nature, are not considered principal business activities and vary between periods, which management believes reduces comparability.AFF per share is a supplementary financial measure, calculated using the same weighted average basic and diluted shares used in calculating income (loss) per share.The following table reconciles cash flow from operating activities to adjusted funds flow and AFF per share:
Three Months Ended March 31,($000s except per share)20262025Cash flow from operating activities59,97283,470Change in non-cash working capital7,168(7,718)Decommissioning expenditures3,7434,525Cash settled transaction and other costs (income)42(170)Adjusted funds flow70,92580,107Per share - basic ($)0.720.80Per share - diluted ($)0.690.79Free Cash Flow FCF is a non-GAAP financial measure. FCF is calculated as cash flow from operating activities, adjusted for changes in non-cash working capital, decommissioning expenditures, and cash settled transaction and other costs (income), less expenditures on property, plant and equipment. Management uses free cash flow to determine the amount of funds available to the Company for future capital allocation decisions.
Three Months Ended March 31,($000s)20262025Cash flow from operating activities59,97283,470Change in non-cash working capital7,168(7,718)Decommissioning expenditures3,7434,525Cash settled transaction and other costs (income)42(170)Adjusted funds flow70,92580,107Less: expenditures on property, plant and equipment(44,618)(54,399)Free cash flow26,30725,708Net DebtNet debt is a capital management measure, calculated as bank debt, senior unsecured notes, term debt, plus the liability component of the convertible debentures plus current assets, less current liabilities, however, excluding the fair value of financial contracts, decommissioning obligations, and lease and other obligations. This metric is used by management to analyze the level of debt in the Company including the impact of working capital, which varies with the timing of settlement of these balances.($000s)As at Mar 31, 2026As at Dec 31, 2025As at Mar 31, 2025Cash22,09618,65411,736Accounts receivable76,13045,81355,506Prepaid expenses and deposits2,2663,1762,363Accounts payable and accrued liabilities(92,183)(65,018)(94,749)Dividends payable(4,283)(4,286)(4,313)Senior unsecured notes(171,965)(171,745)(171,090)Term debt(3,736)(5,993)(5,637)Convertible debentures(41,654)(41,170)(39,819)Net Debt(213,329)(220,569)(246,003)Net Operating Expenses & Net Operating Expenses per boeNet operating expenses is a non-GAAP financial measure, determined by deducting processing income, primarily generated by processing third party volumes at processing facilities where the Company has an ownership interest. It is common in the industry to earn third party processing revenue on facilities where the entity has a working interest in the infrastructure asset. Under IFRS this source of funds is required to be reported as revenue. However, the Company's principal business is not that of a midstream entity whose activities are dedicated to earning processing and other infrastructure payments. Where the Company has excess capacity at one of its facilities, it will look to process third party volumes as a means to reduce the cost of operating/owning the facility. As such, third party processing revenue is netted against operating costs when analyzed by management.Net operating expenses per boe is a non-GAAP ratio, calculated as net operating expenses divided by total barrels of oil equivalent produced during a specific period of time.
Three Months Ended March 31,($000s)20262025Operating expenses 42,22641,996Less: processing income(2,020)(2,162)Net operating expenses40,20639,834$ per boe18.7018.78Operating Netback, Operating Netback per boe & Adjusted Funds Flow per boeOperating netback is a non-GAAP financial measure, calculated as petroleum and natural gas revenue and processing income, less royalties, realized gain (loss) on commodity and FX contracts, operating expenses, and transportation expenses. Operating netback per boe is a non-GAAP ratio, calculated as operating netback divided by total barrels of oil equivalent produced during a specific period of time. This metric is used by management to evaluate the Company's ability to generate cash margin on a unit of production basis.AFF per boe is a non-GAAP ratio, calculated as adjusted funds flow divided by total barrels of oil equivalent produced during a specific period of time.Operating netback and AFF are calculated on a per unit basis as follows:
Three Months Ended March 31,($000s)20262025Petroleum and natural gas revenue158,011160,722Processing income2,0202,162Royalties(27,223)(28,457)Realized gain (loss) on commodity and FX contracts(5,784)1,427Operating expenses(42,226)(41,996)Transportation expenses(2,410)(2,458)Operating netback82,38891,400G&A expense(5,742)(5,598)Interest expense(5,721)(5,695)Adjusted funds flow70,92580,107Barrels of oil equivalent (boe)2,150,4102,121,090Operating netback ($ per boe)38.3143.08Adjusted funds flow ($ per boe)32.9837.76Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release. SOURCE Surge Energy Inc. Original: SURGE ENERGY INC. ANNOUNCES FIRST QUARTER FINANCIAL RESULTS AND OPERATIONAL UPDATES

SURGE ENERGY INC. CONFIRMS APRIL 2026 DIVIDENDMarch 16, 2026 6:00 AM
PR Newswire (Canada)

CALGARY, AB, March 16, 2026 /CNW/ - Surge Energy Inc. ("Surge" or the "Company") (TSX: SGY) confirms that a cash dividend to be paid on April 15, 2026, in respect of March 2026 production, for the shareholders of record on March 31, 2026, will be $0.043333 per share.The dividend is an eligible dividend for the purposes of the Income Tax Act (Canada).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.Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.










SOURCE Surge Energy Inc.

Original: SURGE ENERGY INC. CONFIRMS APRIL 2026 DIVIDEND

SURGE ENERGY INC. ANNOUNCES FOURTH QUARTER AND YEAR END FINANCIAL RESULTS FOR 2025; STRONG 2025 YEAR END RESERVE ADDITIONS; OPERATIONAL UPDATES; AND APPOINTMENT TO THE BOARD OF DIRECTORSMarch 4, 2026 5:39 PM
PR Newswire (Canada)

CALGARY, AB, March 4, 2026 /CNW/ - Surge Energy Inc. ("Surge", "SGY", or the "Company") (TSX: SGY) is pleased to announce its financial and operating results for the quarter and year ended December 31, 2025, and its year end 2025 reserves as independently evaluated by GLJ Ltd. ("GLJ"). Furthermore, Surge is pleased to announce the appointment of Mr. Ryan Gritzfeldt to the Board of Directors, effective March 4, 2026.Select financial and operating information is outlined below and should be read in conjunction with the Company's audited financial statements and management's discussion and analysis for the three months and the year ended December 31, 2025, available at www.sedarplus.ca and on Surge's website at www.surgeenergy.ca.2025 HIGHLIGHTSBased on the Company's disciplined capital allocation model, combined with continued strong drilling and waterflood results in Surge's Sparky and SE Saskatchewan core operating areas, the Company exceeded its budgeted production estimates for 2025 by approximately 1,000 boepd, with production averaging 23,491 boepd in 2025 (88% liquids), as compared to Surge's initial 2025 production guidance of 22,500 boepd (91% liquids). The Company exceeded production estimates while spending approximately $10 million less than originally forecasted, with 2025 capital expenditures totaling $159.7 million, compared to initial 2025 capital guidance of $170 million.In 2025, capital expenditures were reduced by more than $35 million as compared to 2024.  This significant improvement in capital efficiencies represents an 18 percent reduction in capital spending year over year, with expenditures on property, plant and equipment of $159.7 million in 2025, decreasing materially from $195.1 million in 2024. Additionally, Surge reduced net operating costs1 from $20.02 per boe in 2024 to $17.91 per boe in 2025, an 11 percent improvement year over year.During 2025 West Texas Intermediate ("WTI") crude oil prices decreased by nearly US$11 per barrel, from an average of US$75.72 in 2024 to US$64.77 per barrel in 2025. Despite this significant decrease in oil prices, Surge generated adjusted funds flow ("AFF")1 of $279.2 million in 2025 ($2.81 per share), and cashflow from operating activities of $266.0 million ($2.68 per share).As a result of much lower capital spending in 2025, together with lower net operating expenses1, Surge generated meaningfully higher free cash flow ("FCF")1 in 2025 as compared to 2024, despite WTI crude oil prices declining 14 percent (approximately US$11 per barrel). On this basis, the Company generated FCF of $119.5 million in 2025, representing 43 percent of the Company's 2025 AFF of $279.2 million.  This compares to FCF of $99 million in 2024, which represented 34 percent of Surge's 2024 AFF of $294.1 million.In 2025, the Company returned a total of $86.9 million, more than 31 percent of 2025 AFF, to shareholders pursuant to the following:$51.7 million from Surge's monthly base dividend ($0.52 per share, per annum);$8.7 million in share buy backs under the Company's Normal Course Issuer Bid ("NCIB"), repurchasing 1,504,700 shares; and$26.5 million reduction in net debt1, from $247.1 million as at December 31, 2024 to $220.6 million as at December 31, 2025.Surge strategically allocated the majority of remaining FCF to a combination of decommissioning expenditures, cash settlement of dilutive instruments, and small core area "tuck-in" acquisitions.In 2025, the Company generated its strongest finding and development ("F&D") costs, including changes in future development costs ("FDC"), in the past three years. Surge delivered a 2025 Total Proved & Probable ("TPP") F&D of $14.87/boe, which provided a 2.4x recycle ratio2 based on a 2025 operating netback1 (before realized gains on commodity and FX contracts) of $36.23/boe. These results illustrate the strength of Surge's ongoing drilling and waterflood programs.In 2025, the Company achieved a 136 percent TPP reserves replacement2 ratio and reported a TPP reserve life index2 of 11.4 years. Furthermore, the Company reported a TPP Net Asset Value ("NAV")2 of $13.06 per share, based on Surge's December 31, 2025 independent reserve report.FOURTH QUARTER AND YEAR END 2025 FINANCIAL AND OPERATIONAL HIGHLIGHTSExceeded budgeted 2025 production estimates by nearly 1,000 boepd, producing an average of 23,491 boepd in 2025 compared to initially budgeted production of 22,500 boepd;Generated $119.5 million in FCF in 2025 (WTI: US$64.77/bbl), a 21 percent increase from $99.0 million in 2024 (WTI: $75.72/bbl);Distributed cash dividends to shareholders in the amount of $51.7 million in 2025, representing less than 19 percent of 2025 AFF of $279.2 million;Returned an additional $8.7 million to shareholders through the Company's ongoing NCIB, repurchasing over 1.5 million shares in 2025;Reduced net debt by $26.5 million in 2025 to $220.6 million as at December 31, 2025, a decrease of over 10 percent as compared to $247.1 million as at December 31, 2024;On a combined basis, Surge provided total returns of approximately $86.9 million to shareholders in 2025 through the base dividend, share repurchases, and net debt reductions. This represents more than 31 percent of 2025 AFF returned to shareholders;Reduced net operating expenses1 by $2.11 per boe during 2025, to $17.91 per boe in 2025 from $20.02 per boe in 2024. This represents a decrease in net operating expenses of 11 percent year over year;Maintained an undrawn $250 million first lien credit facility;Replaced 136% of 2025 production on a TPP reserves replacement basis (excluding A&D);Reported a year end 2025 TPP F&D, inclusive of changes in FDC, of $14.87/boe and a 2.4x recycle ratio;Exceeded the Company's budgeted 2025 2H/25 production guidance of 22,500 boepd, with Q4/25 production averaging 23,186 boepd;Generated Q4/25 cash flow from operating activities of $59.7 million and AFF of $56.2 million;Annualized Q4/25 AFF represented 0.98 times net debt as at December 31, 2025;Paid $12.9 million in dividends to shareholders in Q4/25, which represents only 23 percent of Q4/25 AFF of $56.2 million; andReturned an additional $0.8 million to shareholders in Q4/25 through Surge's ongoing NCIB, repurchasing 106,800 shares.FINANCIAL AND OPERATING HIGHLIGHTSFINANCIAL AND OPERATING HIGHLIGHTSThree Months Ended December 31,Years Ended December 31,($000s except per share and per boe)20252024% Change20252024% ChangeFinancial highlights





Oil sales121,211158,405(23) %556,350635,618(12) %NGL sales2,4933,378(26) %8,04214,218(43) %Natural gas sales2,6771,38993 %7,2276,8675 %Total oil, natural gas, and NGL revenue126,381163,172(23) %571,619656,703(13) %Cash flow from operating activities59,69764,838(8) %265,903278,647(5) %Per share - basic ($)0.600.64(6) %2.682.76(3) %Per share - diluted ($)0.590.64(8) %2.642.72(3) %Adjusted funds flowa56,24276,121(26) %279,155294,123(5) %Per share - basic ($)a0.570.75(24) %2.812.92(4) %Per share - diluted ($)0.550.75(27) %2.772.87(3) %Net income (loss)b(7,093)(2,656)nmc40,259(53,716)nmPer share - basic ($)(0.07)(0.03)nm0.41(0.53)nmPer share - diluted ($)d(0.07)(0.03)nm0.40(0.53)nmExpenditures on property, plant and equipment41,67258,277(28) %159,706195,103(18) %Net acquisitions and dispositions—(8,868)nm5,661(42,389)nmNet capital expenditures41,67249,409(16) %165,367152,7148 %Net debta, end of period220,569247,126(11) %220,569247,126(11) %






Operating highlights





Production:





Oil (bbls per day)19,74620,675(4) %20,24120,228— %NGLs (bbls per day)673777(13) %522818(36) %Natural gas (mcf per day)16,59917,199(3) %16,36618,672(12) %Total (boe per day) (6:1)23,18624,319(5) %23,49124,158(3) %Average realized price (excluding hedges):





Oil ($ per bbl)66.7283.28(20) %75.3085.85(12) %NGL ($ per bbl)40.2947.26(15) %42.2547.49(11) %Natural gas ($ per mcf)1.750.8899 %1.211.0021 %






Netback ($ per boe)





Petroleum and natural gas revenue59.2572.93(19) %66.6774.27(10) %Realized gain (loss) on commodity and FX contracts1.36(0.12)nm1.64(0.40)nmRoyalties(9.82)(13.27)(26) %(11.52)(13.56)(15) %Net operating expensesa(18.09)(19.12)(5) %(17.91)(20.02)(11) %Transportation expenses(1.05)(1.39)(24) %(1.04)(1.29)(19) %Operating netbacka31.6539.03(19) %37.8439.00(3) %G&A expense(2.60)(2.33)12 %(2.58)(2.34)10 %Interest expense(2.68)(2.68)— %(2.72)(3.40)(20) %Adjusted funds flowa26.3734.02(22) %32.5433.26(2) %






Common shares outstanding, end of period98,877100,382(1) %98,877100,382(1) %Weighted average basic shares outstanding98,947101,142(2) %99,321100,832(1) %Stock-based compensation dilutiond2,594745248 %1,5901,5681 %Weighted average diluted shares outstanding101,541101,887— %100,911102,400(1) %






a This is a non-GAAP and other financial measure which is defined in Non-GAAP and Other Financial Measures.b The twelve months ended December 31, 2024 includes a non-cash impairment charge of $96.5 million.c The Company views this change calculation as not meaningful, or "nm".d Dilution is not reflected in the calculation of net loss for the three months ended December 31, 2025 and for the three months and year ended December 31, 2024.OPERATIONS UPDATE2025 Operations OverviewIn 2025, Surge successfully drilled a total of 58 gross (48.8 net) wells, spending a total of $159.7 million, including expenditures on facilities, equipment, land, and capitalized G&A. Drilling operations were focused on the Company's premium medium and light gravity crude oil assets in the Sparky and SE Saskatchewan core areas, where 29 gross (29 net) and 28 gross (18.8 net) wells were drilled, respectively.In 2025, Surge drilled 17 gross (17 net) multi-lateral wells utilizing the application of modern open hole drilling technology in its Sparky core area, all of which were drilled at the Company's Hope Valley property.At Surge's 100 percent owned and operated Hope Valley play, the Company continues to experience better than anticipated well results from its modern open hole multi-lateral ("OHML") drilling techniques. Surge drilled 17 gross (17 net) OHML wells at Hope Valley in 2025, with average IP90 production rates of 197 bopd. These results are 22 percent better than the Company's independent reserve auditor IP90 Proved Undeveloped type curve expectations of 162 bopd. Surge successfully drilled and brought on production 6 gross (6.0 net) wells in Hope Valley in Q4/25.As at December 31, 2025, 53 percent of the Company's current production is supported by legacy vertical waterfloods, horizontal waterfloods, and natural aquifer support, which help to maintain Surge's low (internally estimated) 25 percent corporate decline2. Surge has significantly increased the Company's horizontal waterflood program, from seven injector conversions in 2024, to 14 conversions in 2025, based on the continued success of its Sparky, Lloyd, Ratcliffe, Slave Point, and Midale waterfloods. In 2H/25, Surge drilled the Company's first waterflood injector to initiate secondary recovery at Surge's Hope Valley discovery, with the goal of increasing estimated ultimate recoveries from this large Sparky (Mannville) crude oil discovery. The Company has five more dedicated injectors planned for Hope Valley in 2026.Additionally, over the past 15 months the Company has drilled 20 gross (20 net) single lateral multi-frac wells in the Sparky core area where Surge has successfully implemented high-density frac technology. This approach has doubled the number of frac stages per 1,400m lateral; increasing from 26 stages per well, to 52 stages per well. This strategic modification to Surge's frac design has resulted in a 50 percent increase in IP90 average production rates4 as compared to Surge's previous single lateral Sparky wells, for a modest additional cost increase of approximately 15 percent ($0.3 million per well).Surge's 2025 SE Saskatchewan drilling program focused primarily on the Frobisher formation, with a total of 28 gross (18.8 net) wells drilled. This included the use of modern OHML drilling techniques, with 9 gross (7.5 net) wells drilled as stacked multi-lateral wells, each consisting of two to three open-hole legs. Additionally, the program included 1 gross (1 net) single-leg Frobisher well and 1 gross (0.5 net) Frobisher re-entry. Over the last three years, Surge has achieved industry leading results with average 90 day production rates of 195 bopd for all Frobisher wells drilled in the Province of Saskatchewan between January 1, 2022 and December 31, 20253.In 2025, Surge drilled two (1.8 net) 8 leg OHML wells in the Frobisher 'State A' formation.  The second of these drills had an average 90 day production rate of 175 bopd.  Surge internally estimates 23 gross (17.2 net) future State A drilling locations, and 9 gross (8.5 net) of these were booked by GLJ in the YE2025 Reserve Report.A 4 leg multi-lateral well (0.8 net) was drilled in the Oungre / Ratcliffe formation at Surge's Freda waterflooded Lake property.  This well came on production in late December and had a 30 day peak production rate of 325 bopd.  Surge internally estimates 9 gross (8.5 net) offsetting drilling locations, with 4 gross (4 net) of these booked by GLJ in the YE2025 Reserve Report.2026 Operations UpdateSurge's 2026 capital program remains focused in the Company's Sparky and SE Saskatchewan core areas, with over 95 percent of the 2025 drilling budget allocated to these two areas. A total of 60 gross (54.5 net) wells are planned in 2026, with 31 gross (31.0 net) wells planned in Sparky, and 29 gross (23.5 net) wells planned in SE Saskatchewan.Sparky (Mannville) Surge's 2026 capital program in the Sparky core area (>85 percent liquids; 22° API average crude oil gravity) is focused on development drilling, consisting of 10 gross (10.0 net) single-leg fracked Sparky horizontal wells, 16 gross (16.0 net) multi-leg Mannville stack wells, and 5 gross (5.0 net) dedicated single leg injectors. In 2026, Management will be focused on the continued growth of Surge's multilateral well footprint in the Mannville stack of formations, with approximately two thirds of drilling capital directed to multilateral development.Surge views the Nipisi Clearwater development as a strong technical analog for its Hope Valley Sparky development. With the success of the waterflood in the Clearwater development, Surge plans to accelerate the waterflood at Hope Valley with the drilling of 5 gross (5.0 net) dedicated single-lateral injectors in 2026.SE Saskatchewan In the Company's SE Saskatchewan core area, Surge is currently budgeting the drilling of 29 gross (23.5 net) conventional Mississippian horizontal wells, with 25 gross (19.5 net) of these wells targeting the Frobisher light oil formation, and 4.0 gross (4.0 net) targeting the Midale and Lodgepole formations.Over the past four years, the Company has strategically endeavored to optimize reservoir contact by drilling two and three leg vertically stacked multi-lateral wells within the Frobisher formation. In 2026, 20 gross (15.0 net wells) of Surge's planned 25 gross (19.5 net) Frobisher wells (77 percent) will be drilled as multi-lateral horizontal wells.2025 YEAR END RESERVES HIGHLIGHTSSurge is pleased to announce the results of the independent reserves evaluation of the Company's crude oil and natural gas assets, dated February 20, 2026 and effective December 31, 2025, in compliance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and in accordance with the Canadian Oil and Gas Evaluation Handbook (the "Reserve Report").Building on the successful 2025 drilling program in the Sparky and SE Saskatchewan core areas, Surge continued to delineate and improve the Company's reserve base through in-fill drilling, pool extensions, incremental waterflood bookings, and new exploration/appraisal drilling throughout the year. Surge delivered its strongest F&D costs in three years, despite a significant decrease in the WTI price used in the Reserves Report.With Surge's December 31, 2025 Reserve Report, the Company delivered the following:Reported the Company's strongest F&D costs, including changes in FDC in the past three years:
$14.87/boe for TPP reserves;$19.11/boe for Total Proved ("TP") reserves; and$19.77/boe for Proved Developed Producing ("PDP") reserves.Generated the following F&D recycle ratios based on a 2025 operating netback of $36.23/boe (before realized gains on commodity and FX contracts), illustrating the strength of the Company's drilling and waterflood activity in 2025:
TPP recycle ratio of 2.4x;TP recycle ratio of 1.9x; andPDP recycle ratio of 1.8x.Increased TPP reserves by 6 percent or 5.5 million boe, from 90.2 million boe at December 31, 2024 to 95.7 million boe as at December 31, 2025;Organically achieved a 136 percent TPP reserves replacement ratio2 (excluding acquisitions and divestitures), a 102 percent TP reserves2 replacement ratio and a 94 percent PDP replacement ratio;Reported a NAV per basic share, inclusive of net debt, of $13.06 per share TPP, $7.62 per share TP, and $3.97 per share PDP;392 gross (360.6 net) booked TPP drilling locations and 309 gross (282.3 net) TP drilling locations4; over 90 percent of these booked drilling locations are located in the Company's Sparky and SE Saskatchewan core areas4;Liquids weighting of 90 percent (oil and natural gas liquids) in all reserve categories; andReported a strong reserve life index of 11.4 years on TPP reserves and 8.0 years on TP reserves.2025 YEAR-END RESERVES DETAILSThe Company's reserves were independently evaluated by GLJ in accordance with NI 51-101, effective December 31, 2025. Surge's Annual Information Form (the "AIF") for the year ended December 31, 2025 contains Surge's reserves data and other oil and natural gas information as mandated by NI 51-101.The following tables summarize Surge's working interest in oil, natural gas liquids and natural gas reserves and the net present values ("NPV") of future net revenue for these reserves (before taxes) using forecast prices and costs as evaluated in the Reserves Report. The evaluation is based on the three consultant's average (GLJ, McDaniel & Associates Consultants Ltd. and Sproule Associates Ltd.) forecast pricing and exchange rates at December 31, 2025 which is available on the GLJ website at www.gljpc.com. All references to reserves in this release are to gross Company reserves, meaning Surge's working interest reserves before deductions of royalties and before consideration of the Company's royalty interests. The amounts in the tables may not add due to rounding.RESERVES SUMMARY AND NET PRESENT VALUEGross Reserves(a)Crude Oil and NGLs(Mbbl)(b)Natural
Gas(MMcf)(c)Oil Equivalent
Total Reserves(Mboe)Before Tax NPV of Future Net
Revenue(d) Discounted at5%($MM)10%($MM)15%($MM)Proved:






Proved Producing34,26922,14937,961650613558
Proved Non-Producing1,2001,2991,417242119
Proved Undeveloped25,20914,88927,691457340257Total Proved60,67938,33767,0681,131974833
Probable25,20020,62928,638720538421Total Proved Plus Probable85,87958,96695,7061,8511,5121,254a)Amounts may not add due to rounding.b)Includes light, medium, heavy and natural gas liquids.c)Includes non-associated and natural gas, solution gas and coal bed methane.d)Total ADR (Abandonment, Decommissioning, Reclamation) costs for active and inactive wells, facilities and pipelines is included in the reserves report, as it is best practice as stated in the COGE Handbook.FUTURE DEVELOPMENT CAPITAL

Total ProvedTotal Proved
Plus Probable

($MM)($MM)2026
1221602027
1281422028
1291572029
1301762030
7093Remaining
1727Total (Undiscounted)
596755Total (Discounted at 10%)
480602F&D AND FD&A COSTS
20253-Year AverageF&D Costs, including total change in FDC (a)Proved Developed Producing$19.77$22.58Total Proved$19.11$21.45Total Proved + Probable$14.87$23.66FD&A Costs, including total change in FDC (b)Proved Developed Producing$18.16$24.04Total Proved$17.66$28.92Total Proved + Probable$13.84N/A (c)a) 2025 F&D costs calculated using capital of $160 million plus changes in FDC of +$7 million (TP) and +$14 million (TPP)b)2025 FD&A costs calculated using capital of $165 million plus changes in FDC of +$15 million (TP) and +$30 million (TPP)c)Not meaningful due to 2025 non-core dispositions; negative 2025 FD&A costs and negative reserve adds (-18 mmboe TPP).NET ASSET VALUE
PDPTPTPPReserve Value NPV10 BT ($mm)6139741,512Net Debt ($mm)(221)(221)(221)Total Net Assets ($mm)3937541,292Basic Shares Outstanding (mm)98.998.998.9Estimated NAV per Basic Share ($/share)3.977.6213.06




SUMMARY OF PRICING AND INFLATION RATE ASSUMPTIONSAs at December 31, 2025

Canadian Light Western CanadaNatural Gas

WTISweet CrudeSelect (WCS) CrudeAECO-CExchange Rate
Cushing, Oklahoma40° API20.5 APISpotForecast(a) ($US/bbl)($Cdn/bbl)($Cdn/bbl)($Cdn/mmbtu)($US/$Cdn)Year2025 (b)2024 (c)2025 (b)2024 (c)2025 (b)2024 (c)2025 (b)2024 (c)2025 (b)2024 (c)Forecast









2026$59.92$76.00$77.54$100.69$65.12$87.59$3.00$3.420.7280.7252027$65.10$76.00$83.60$97.33$70.43$84.67$3.30$3.310.7370.7502028$70.28$77.52$90.18$99.28$76.90$86.36$3.49$3.350.7400.7502029$71.93$79.07$92.32$101.27$78.71$88.09$3.58$3.410.7400.7502030$73.37$80.65$94.17$103.29$80.29$89.85$3.65$3.480.7400.7502031$74.84$82.26$96.06$105.36$81.90$91.65$3.72$3.550.7400.7502032$76.34$83.91$97.98$107.46$83.53$93.48$3.80$3.620.7400.7502033$77.87$85.59$99.93$109.61$85.20$95.35$3.88$3.690.7400.7502034$79.42$87.30$101.93$111.81$86.91$97.26$3.95$3.770.7400.7502035$81.01$89.05$103.97$114.05$88.65$99.21$4.03$3.850.7400.750a)Prices escalate at two percent after 2035, with the exception of foreign exchange which stays flat.b) Three Consultant Average Price Deck Jan 1, 2026c) Sproule Price Deck Dec 31, 2024APPOINTMENT OF BOARD MEMBERSurge is pleased to announce the appointment of Mr. Ryan Gritzfeldt to the Board of Directors, effective March 4, 2025.Mr. Gritzfeldt is a Professional Engineer and senior energy executive with over 27 years of experience in the Canadian oil and gas industry.  Mr. Gritzfeldt most recently served as Chief Operating Officer of Veren Inc. (formerly Crescent Point Energy) until it's combination with another Canadian energy company in May 2025.  Prior to this role, he held progressively senior leadership positions across the organization including Vice President, Marketing and Innovation, and Vice President, Engineering and Business Development. Mr. Gritzfeldt received his Bachelor of Applied Science in Industrial Systems Engineering with a Petroleum Systems Option from the University of Regina in 1998.  He is a member of both the Association of Professional Engineers and Geoscientists of Alberta and the Association of Professional Engineers and Geoscientists of Saskatchewan and is a Graduate of the Institute of Corporate Directors.Surge welcomes Mr. Gritzfeldt to our Board of Directors.OUTLOOK: PREMIUM ASSET QUALITY DRIVES SUPERIOR RETURNSSurge's premium, conventional crude oil asset base is now more than 92 percent focused in two of the top four crude oil plays in Canada5 based on per well payout economics in its Sparky (~14,000 boepd; 85 percent medium gravity oil and liquids) and SE Saskatchewan (~7,200 boepd; 90 percent light oil and liquids) core areas.In light of ongoing geopolitical uncertainty, pursuant to the Company's ongoing, systematic, hedging program, Surge has been strategically locking in crude oil hedge positions for the balance of 2026 at progressively higher crude oil prices, to protect the Company's 2026 capital program and dividend.  Surge intends to continue to deliver attractive shareholder returns in 2026 and beyond based on the key corporate fundamentals set forth below:Estimated 2026 average production of 23,000 boepd (88 percent liquids);Estimated 2026 AFF of $265 million6 ($2.68 per share);Estimated 2026 cash flow from operating activities of $245 million6 ($2.47 per share);A $51.5 million annual base cash dividend ($0.52 per share annual dividend, paid monthly), which represents less than 20 percent of the Company's forecasted 2026 AFF of $265 million;A TPP NAV per share of $13.06;An undrawn $250 million first lien credit facility as at December 31, 2025;An internally estimated 25 percent annual corporate decline;More than 900 (net) internally estimated drilling locations, providing a 12 year drilling inventory4; and$1.2 billion in tax pools (representing an estimated 6 year tax horizon)6.1. This is a non-GAAP and other financial measure which is defined under Non-GAAP and Other Financial Measures.2. See Oil & Gas Advisories.3. Per GeoScout data for all SE Saskatchewan Frobisher wells with an on-production date from January 1, 2022 to December 31, 2025 and 90 days of production data available.4. See Drilling Inventory.5. Source: Peters & Co. (January 2026 North American Crude Oil and Natural Gas Plays).6. Based on the following pricing assumptions: US$65 WTI, US$12.00 WCS differential, US$4.00 EDM differential, $0.715 CAD/USD FX and $2.95 AECO.FORWARD LOOKING STATEMENTS:This press release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.More particularly, this press release contains statements concerning: Surge's declared focus and primary goals; management's 2026 budgeted average production guidance; crude oil fixed price hedges protecting the Company's 2026 free cash flow profile; share repurchases under the Company's NCIB; the repeatability and consistency of drilling results at Hope Valley and moving this asset the full development phase; increasing estimated ultimate recoveries a the Sparky (Manville) crude oil discovery; Surge's planned 2026 drilling program and focus, including expectations regarding the number of wells to be drilled and the types thereof; Surge's 2026 capital program and focus; Surge's intention to have a dedicated rig drilling multi-lateral wells in Hope Valley for the entire year; Surge's reserves, future net revenue, future development capital and reserve life index; Surge continuing to execute an active drilling program at both the Sparky and SE Saskatchewan core areas during the first half of 2026 and the number of wells to be drilled thereat; expectations regarding Surge's proved and probable reserves estimates and locations; Surge's hedging program and its ability to protect the Company's 2026 capital program and dividend; Surge's continued outlook; Management's belief that Surge is well positioned to continue to deliver attractive shareholder returns; and Management's expectations regarding Surge's 2026 average production, AFF, cash flow from operating activities, dividends, drilling inventory and locations, annual corporate decline rates, tax pools and tax horizon.The forward-looking statements are based on certain key expectations and assumptions made by Surge, including expectations and assumptions regarding the performance of existing wells and success obtained in drilling new wells; anticipated expenses, cash flow and capital expenditures; the application of regulatory and royalty regimes; prevailing commodity prices and economic conditions; development and completion activities; the performance of new wells; the successful implementation of waterflood programs; the availability of and performance of facilities and pipelines; the geological characteristics of Surge's properties; the successful application of drilling, completion and seismic technology; the determination of decommissioning liabilities; prevailing weather conditions; exchange rates; licensing requirements; the impact of completed facilities on operating costs; the availability and costs of capital, labour and services; and the creditworthiness of industry partners.Although Surge believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Surge can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the condition of the global economy, including trade, public health and other geopolitical risks; risks associated with the oil and gas industry in general (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks); commodity price and exchange rate fluctuations and constraint in the availability of services, adverse weather or break-up conditions; the imposition or expansion of tariffs imposed by domestic and foreign governments or the imposition of other restrictive trade measures, retaliatory or countermeasures implemented by such governments, including the introduction of regulatory barriers to trade and the potential effect on the demand and/or market price for Surge's products and/or otherwise adversely affects Surge; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; and failure to obtain the continued support of the lenders under Surge's bank line. Certain of these risks are set out in more detail in Surge's AIF dated March 4, 2026 and in Surge's MD&A for the year ended December 31, 2025, both of which have been filed on SEDAR+ and can be accessed at www.sedarplus.ca.The forward-looking statements contained in this press release are made as of the date hereof and Surge undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.Oil and Gas AdvisoriesBarrel of Oil EquivalencyThe term "boe" means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. "Boe/d" and "boepd" mean barrel of oil equivalent per day. Bbl means barrel of oil and "bopd" means barrels of oil per day.  NGLs means natural gas liquids.Oil and Gas MetricsThis press release contains certain oil and gas metrics and defined terms which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar metrics/terms presented by other issuers and may differ by definition and application. All oil and gas metrics/terms used in this document are defined below:"Acquisition capital" is a non-GAAP financial measure used in the determination of FD&A costs, which is a non-GAAP ratio. The most directly comparable GAAP measure to acquisition capital is expenditures on acquisitions. For property acquisitions and dispositions, acquisition capital is the net purchase price of assets acquired (and net proceeds of assets disposed). For corporate acquisitions, it is the purchase price (cash and/or shares plus assumed bank debt, if applicable) including any estimated working capital surplus or deficit rather than the amounts allocated to property, plant and equipment for accounting purposes. The following table details the calculation of Acquisition capital for the periods indicated:
Years Ended December 31,($000s)202520242023Expenditures on acquisitions5,7773,5354,240Less: cash from dispositions(116)(45,924)(2,570)Acquisition capital5,661(42,389)1,670"Capital payout" or "payout per well", is the time period for the operating netback of a well to equate to the individual cost of drilling, completing and equipping the well. Management uses capital payout and payout per well as a measure of capital efficiency of a well to make capital allocation decisions."Development capital" is used in the determination of FD&A costs, which is a non-GAAP ratio. Development capital is the Company's expenditures on property, plant, and equipment. Development capital means the aggregate exploration and development costs incurred in the financial year on reserves that are categorized as development."Original oil in place (OOIP)" refers to the initial volume of oil present in the reservoir at the time of its formation."FDC (Future Development Costs)" is the best estimate of the capital costs required to develop and produce reserves."F&D (Finding & Development) Costs including total change in FDC" is calculated as the sum of capital spent in 2025 for development of all properties (excluding those Acquired or Disposed of in 2025) and the change in FDC from YE2024 to YE2025, divided by the sum of all reserve additions other than those from Acquisitions & Dispositions.  Management uses F&D as a measure of capital efficiency for organic reserves development."Finding, Development and Acquisition (FD&A) Costs including total change in FDC" is the sum of the capital spent in 2025 for development of all properties (including those Acquired or Disposed of in 2025), Acquisition & Divestiture capital, and the change in FDC from YE2024 to YE2025, divided by the sum of all reserve additions including those from Acquisitions & Dispositions. Acquisition and Divestiture capital is a non-GAAP financial measure used as a component of FD&A costs. Management uses FD&A costs as a measure of capital efficiency for organic and acquired reserves development."Recycle ratio" is calculated by dividing operating netback per boe by F&D costs for the year. Operating netback per boe is a non-GAAP ratio that uses operating netback, a non-GAAP financial measure, as a component. Acquisition capital, a non-GAAP financial measure, is used as a component of F&D costs. Management uses the recycle ratio to relate the cost of adding reserves to the expected cash flows to be generated."Net Asset Value (NAV)" is calculated as reserve value discounted at 10% on a BTax basis, less the Company's net debt, a non-GAAP financial measure, at December 31, 2025 of $220.6 million and is divided by 98.9 million common shares outstanding as at December 31, 2025."Reserve Life Index" is calculated as total Company share reserves divided by Surge's estimated average 2026 production (23,000 boepd)."Reserves Replacement Ratio" is the ratio of reserves booked through acquisitions, dispositions, discoveries, infills, extensions, economic factors, technical revisions, and improved recovery to production for the period."Organic Reserves Replacement Ratio" is the reserves replacement ratio excluding the effect of acquisitions and dispositions."Decline" is the amount existing production decreases year over year (March to March), without new drilling. GLJ's 2025YE reserves have a PDP decline of 25 percent and a P+PDP decline of 23 percent.Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare our operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes.Drilling Inventory This press release discloses drilling locations in two categories: (i) booked locations; and (ii) unbooked locations. Booked locations are proved locations and probable locations derived from an external evaluation using standard practices as prescribed in the Canadian Oil and Gas Evaluations Handbook and account for drilling locations that have associated proved and/or probable reserves, as applicable.Unbooked locations are internal estimates based on prospective acreage and assumptions as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves or resources. Unbooked locations have been identified by Surge's internal Engineers and Geologists (and have been reviewed by Surge's Qualified Reserve Evaluators) as an estimation of our multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Company will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which the Company actually drills wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, the majority of other unbooked drilling locations are farther away from existing wells where Management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.Assuming a January 1, 2026 reference date, the Company will have over >1,000 gross (>900 net) drilling locations identified herein; of these >600 gross (>525 net) are unbooked locations. Of the 361 net booked locations identified herein, 282 net are Proved locations and 78 net are Probable locations based on GLJ's 2025YE reserves. Assuming an average number of net wells drilled per year of 65, Surge's >900 net locations provide 13 years of drilling.Assuming a January 1, 2026 reference date, the Company will have over >500 gross (>500 net) Sparky Core area drilling locations identified herein; of these >300 gross (>300 net) are unbooked locations. Of the 191 net booked locations identified herein, 142 net are Proved locations and 50 net are Probable locations based on GLJ's 2025YE reserves. Assuming an average number of wells drilled per year of 35, Surge's >500 net locations provide >14 years of drilling.Assuming a January 1, 2026 reference date, the Company will have over >325 gross (>300 net) SE Saskatchewan drilling locations identified herein; of these >170 gross (>145 net) are unbooked locations. Of the 143 net booked locations identified herein, 115 net are Proved locations and 29 net are Probable locations based on GLJ's 2025YE reserves.  Assuming an average number of wells drilled per year of 30, Surge's >300 net locations provide >10 years of drilling.Assuming a January 1, 2026 reference date, the Company will have over 23 gross (17.2 net) State A Frobisher SE Saskatchewan drilling locations identified herein; of these 14 gross (8.7net) are unbooked locations. Of the 9 net booked locations identified herein, 7 net are Proved locations and 2 net are Probable locations based on GLJ's 2025YE reserves. Surge's internally used type curves were constructed using a representative, factual and balanced analog data set, as of January 1, 2025. All locations were risked appropriately, and EUR's were measured against OOIP estimates to ensure a reasonable recovery factor was being achieved based on the respective spacing assumption. Other assumptions, such as capital, operating expenses, wellhead offsets, land encumbrances, working interests and NGL yields were all reviewed, updated and accounted for on a well-by-well basis (and reviewed by Surge's Qualified Reserve Evaluators).  All type curves fully comply with Part 5.8 of the Companion Policy 51 – 101CP. Over the past 15 months the Company has successfully implemented high-density frac technology (doubling the stages per well), drilling 20 gross (20 net) single lateral multi-frac wells in the Sparky core area.  In Provost, this strategic modification to Surge's frac design has resulted in a >50 percent increase in IP90 average production rates (from 94 bopd to 211 bopd on a 1P basis, and from 118 bopd to 210 bopd on a 2P basis) and a >20 percent increase in average oil EUR bookings (from 82 Mstb to 107 Mstb on a 1P basis, and from 110 Mstb to 148 Mstb on a 2P basis).  The cost increase associated with this is approximately 15 percent ($0.3 million per well) in the Company's independent reserve auditor type curve as compared to the standard stage spacing bookings.Non-GAAP and Other Financial MeasuresThis press release includes references to non-GAAP and other financial measures used by the Company to evaluate its financial performance, financial position or cash flow. These specified financial measures include capital management measures, non-GAAP financial measures and non-GAAP ratios and are not defined by IFRS and therefore are referred to as non-GAAP and other financial measures. Certain secondary financial measures in this press release are not prescribed by GAAP. These non-GAAP and other financial measures are included because Management uses the information to analyze business performance, cash flow generated from the business, leverage and liquidity, resulting from the Company's principal business activities and it may be useful to investors on the same basis. None of these measures are used to enhance the Company's reported financial performance or position. The non-GAAP and other financial measures do not have a standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to similar measures presented by other issuers. They are common in the reports of other companies but may differ by definition and application. All non-GAAP and other financial measures used in this document are defined below, and as applicable, reconciliations to the most directly comparable GAAP measure for the quarter and year ended December 31, 2025, have been provided to demonstrate the calculation of these measures:Acquisition Capital, FD&A Costs & Recycle RatioAcquisition capital is a non-GAAP financial measure and FD&A costs and recycle ratio are non-GAAP ratios. See "Oil and Gas Advisories".Adjusted Funds Flow & Adjusted Funds Flow Per ShareAdjusted funds flow is a capital management measure. The Company adjusts cash flow from operating activities in calculating adjusted funds flow for changes in non-cash working capital, decommissioning expenditures, and cash settled transaction and other costs (income). Management believes the timing of collection, payment or incurrence of these items involves a high degree of discretion and as such may not be useful for evaluating Surge's cash flows.Changes in non-cash working capital are a result of the timing of cash flows related to accounts receivable and accounts payable, which management believes reduces comparability between periods. Management views decommissioning expenditures predominately as a discretionary allocation of capital, with flexibility to determine the size and timing of decommissioning programs to achieve greater capital efficiencies and as such, costs may vary between periods. Transaction and other costs represent expenditures associated with property acquisitions and dispositions, debt restructuring and employee severance costs, which management believes do not reflect the ongoing cash flows of the business, and as such reduces comparability. Each of these expenditures, due to their nature, are not considered principal business activities and vary between periods, which management believes reduces comparability.Adjusted funds flow per share is a supplementary financial measure, calculated using the same weighted average basic and diluted shares used in calculating income (loss) per share.The following table reconciles cash flow from operating activities to adjusted funds flow and adjusted funds flow per share:
Three Months Ended December 31,Years Ended December 31,($000s except per share)2025202420252024Cash flow from operating activities59,69764,838265,903278,647Change in non-cash working capital(7,158)5,303—(7,191)Decommissioning expenditures4,4635,53514,09915,175Cash settled transaction and other costs (income)(760)445(847)7,492Adjusted funds flow56,24276,121279,155294,123Per share - basic ($)0.570.752.812.92Per share - diluted ($)0.550.752.772.87Free Cash Flow Free cash flow is a non-GAAP financial measure. Free cash flow is calculated as cash flow from operating activities, adjusted for changes in non-cash working capital, decommissioning expenditures, and cash settled transaction and other costs (income), less expenditures on property, plant and equipment. Management uses free cash flow to determine the amount of funds available to the Company for future capital allocation decisions.
Three Months Ended December 31,Years Ended December 31,($000s)2025202420252024Cash flow from operating activities59,69764,838265,903278,647Change in non-cash working capital(7,158)5,303—(7,191)Decommissioning expenditures4,4635,53514,09915,175Cash settled transaction and other costs (income)(760)445(847)7,492Adjusted funds flow56,24276,121279,155294,123Less: expenditures on property, plant and equipment(41,672)(58,277)(159,706)(195,103)Free cash flow14,57017,844119,44999,020Net DebtNet debt is a capital management measure, calculated as bank debt, senior unsecured notes, term debt, plus the liability component of the convertible debentures plus current assets, less current liabilities, however, excluding the fair value of financial contracts, decommissioning obligations, and lease and other obligations. There is no comparable measure in accordance with IFRS for net debt. This metric is used by management to analyze the level of debt in the Company including the impact of working capital, which varies with the timing of settlement of these balances.($000s)As at Dec 31, 2025As at Sep 30, 2025As at Dec 31, 2024Cash18,65420,4947,594Accounts receivable45,81352,30558,327Prepaid expenses and deposits3,1764,5723,233Accounts payable and accrued liabilities(65,018)(72,373)(95,433)Dividends payable(4,286)(4,289)(4,350)Senior unsecured notes(171,745)(171,526)(170,872)Term debt(5,993)(5,872)(6,224)Convertible debentures(41,170)(40,704)(39,401)Net Debt(220,569)(217,393)(247,126)Net Operating Expenses & Net Operating Expenses per boeNet operating expenses is a non-GAAP financial measure, determined by deducting processing income, primarily generated by processing third party volumes at processing facilities where the Company has an ownership interest. It is common in the industry to earn third party processing revenue on facilities where the entity has a working interest in the infrastructure asset. Under IFRS this source of funds is required to be reported as revenue. However, the Company's principal business is not that of a midstream entity whose activities are dedicated to earning processing and other infrastructure payments. Where the Company has excess capacity at one of its facilities, it will look to process third party volumes as a means to reduce the cost of operating/owning the facility. As such, third party processing revenue is netted against operating costs when analyzed by management. Net operating expenses per boe is a non-GAAP ratio, calculated as net operating expenses divided by total barrels of oil equivalent produced during a specific period of time.
Three Months Ended December 31,Years Ended December 31,($000s)2025202420252024Operating expenses40,47644,563161,385185,638Less: processing income(1,899)(1,780)(7,866)(8,592)Net operating expenses38,57742,783153,519177,046$ per boe18.0919.1217.9120.02Operating Netback, Operating Netback per boe, and Adjusted Funds Flow per boeOperating netback is a non-GAAP financial measure, calculated as petroleum and natural gas revenue and processing and other income, less royalties, realized gain (loss) on commodity and FX contracts, operating expenses, and transportation expenses. Operating netback per boe is a non-GAAP ratio, calculated as operating netback divided by total barrels of oil equivalent produced during a specific period of time. There is no comparable measure in accordance with IFRS. This metric is used by management to evaluate the Company's ability to generate cash margin on a unit of production basis.Adjusted funds flow per boe is a non-GAAP ratio, calculated as adjusted funds flow divided by total barrels of oil equivalent produced during a specific period of time.Operating Netback & Adjusted Funds Flow are Calculated on a per unit basis as follows:
Three Months Ended December 31,Years Ended December 31,($000s)2025202420252024Petroleum and natural gas revenue126,381163,172571,619656,703Processing and other income1,8991,7807,8668,592Royalties(20,953)(29,693)(98,761)(119,919)Realized gain (loss) on commodity and FX contracts2,895(264)14,089(3,493)Operating expenses(40,476)(44,563)(161,385)(185,638)Transportation expenses(2,239)(3,101)(8,897)(11,429)Operating netback67,50787,331324,531344,816G&A expense(5,548)(5,216)(22,087)(20,653)Interest expense(5,717)(5,994)(23,289)(30,040)Adjusted funds flow 56,24276,121279,155294,123Barrels of oil equivalent (boe)2,133,0252,237,2738,573,9348,841,938Operating netback ($ per boe)31.6539.0337.8439.00Adjusted funds flow ($ per boe)26.3734.0232.5433.26Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.















SOURCE Surge Energy Inc.

Original: SURGE ENERGY INC. ANNOUNCES FOURTH QUARTER AND YEAR END FINANCIAL RESULTS FOR 2025; STRONG 2025 YEAR END RESERVE ADDITIONS; OPERATIONAL UPDATES; AND APPOINTMENT TO THE BOARD OF DIRECTORS

SURGE ENERGY INC. CONFIRMS MARCH 2026 DIVIDENDFebruary 16, 2026 6:00 AM
PR Newswire (Canada)

CALGARY, AB, Feb. 16, 2026 /CNW/ - Surge Energy Inc. ("Surge" or the "Company") (TSX: SGY) confirms that a cash dividend to be paid on March 16, 2026, in respect of February 2026 production, for the shareholders of record on February 28, 2026, will be $0.043333 per share.








The dividend is an eligible dividend for the purposes of the Income Tax Act (Canada).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.Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.










SOURCE Surge Energy Inc.

Original: SURGE ENERGY INC. CONFIRMS MARCH 2026 DIVIDEND

SGY-T
Surge Energy Inc
12.66
+0.24
+1.93%

That was an easy double.

Seems that way. Lot of people are missing the boat.
I was late on this one and am still up 60%

Many plays have paid 3 and 4 XXX since 2020

I'm looking for 18-20 bucks here. No rush.

Not too many following Canadian oil and gas stocks are there? ha

SGY-T Anybody? I'm getting lonely.
Surge Energy Inc
10.62
+0.56
+5.57%

Insiders buy as Surge Energy surges back

Surge Energy Inc. SGY-T +1.07%increase
ended 2021 producing 21,500 barrels of oil equivalent per day. This year, Surge hopes to reduce net debt to a range of $250-million to $265-million. At that point, Surge could visit the possibility of reinstating its dividend. While a lot will probably depend on oil prices, insiders seem optimistic. Since Dec. 13, three insiders who are either officers or directors have spent a total of $523,540 buying shares in the market.

SGY-T Surge Energy Inc
6.61
-0.01
-0.15%

ZPTAF: effective Aug. 20,2021 a one for 8.5 reverse split:

https://otce.finra.org/otce/dailyList?viewType=Symbol%2FName%20Changes

Good call on that one.

T

ZPTAF bullish 1.92

bull flag


http://www.surgeenergy.ca/



normal chart


log chart