Surge Energy Inc.

Surge Energy Inc. has entered into a $30 million bought-deal financing of five-year convertible unsecured subordinated debentures with a syndicate of underwriters led by National Bank Financial Inc. The debentures will have a coupon of 6.75% per annum, and a conversion price of $2.25 per surge common share. The company has granted the underwriters an over-allotment option to purchase up to an additional $4.5 million aggregate principal amount of the debentures, on the same terms, exercisable in whole or in part at any time up to the 30^th day following initial closing of the Convertible Debenture Financing.