2010-01-12-2009-12-08-2009-12-08

Acquired 75%WI in 4 Pawnee Co., OK, wells.

Surge Global Energy Inc., Solana Beach, Calif., (OTCBB: SRGG) has acquired a 75% working interest in four previously drilled oil and gas wells on a 40-acre lease in Pawnee County, Oklahoma., from privately held Mandalay Energy Resources LLC, Denver, for $300,000. Under the turnkey agreement, funds from the transaction will be paid directly to CAVU Resources Inc., Tulsa, Okla., (Pink Sheets: CAVR) to be used for the rework of and new equipment for the four wells. Those costs will be repaid to Surge in monthly installments of 75% of the net income received from oil and gas purchasers each month up to a total of $40,000 per month, until a total of $354,000 has been paid. After payout, Surge will retain a 25% working interest in the property and may increase its investment to 10 wells for an additional $364,000. Surge also received an area of mutual interest on surrounding acreage and a security interest in the property until the lease is paid in full. The 40-acre, 10-well property is projected to have reserves of 133,000 barrels of oil equivalent, with Surge's 25% share estimated at 33,000 barrels of oil equivalent. Surge will use cash on hand and may also sell common shares to finance this acquisition.