April 15, 2021 – Surge Energy US Holdings Company (“Surge Energy”) has engaged ZetaWare, Inc. (“ZetaWare”), an independent firm, to assess the estimated original oil in place (“OOIP”) under its Moss Creek assets in Howard and Borden Counties in Texas. The firm has determined the estimated OOIP to be approximately seventeen billion barrels of oil. ZetaWare is an independent firm known for petroleum system modeling and resource simulation and determination.
Of the approximately seventeen billion barrels of OOIP resource, Surge Energy is currently developing two primary zones that are well delineated and understood, is pursuing appraisal and development of two secondary zones, and is studying upside opportunity in two additional zones in the Moss Creek Field. Surge Energy and previous operators have recovered less than 1% of the total OOIP calculated by Zetaware.
The primary recovery factor for unconventional shale oil play is generally in the range of 2-8% (Journal of Petroleum Technology, September 30, 2019).
“Surge Energy is constantly evaluating opportunities to increase oil recovery,” said Chief Geologist, Dr. Xijin (CJ) Liu. “The amount of oil produced to date compared to total calculated OOIP suggests that opportunities exist to recover more oil into the future.”
“Surge Energy has made great progress in the geological understanding of the Moss Creek Field in the past several years,” said Chief Executive Office Linhua Guan. “This estimation by ZetaWare supports the presence of significant OOIP and I am excited about Surge Energy’s future with our strong resource base and talented workforce.”
About Surge Energy
Surge Energy US Holdings Company is an independent oil and natural gas company focused on the development, exploitation, production and acquisition of oil and natural gas reserves in the Midland Basin of West Texas, one of three primary sub-basins of the Permian Basin. The Company is headquartered in Houston, Texas, and currently holds approximately 110,000 net acres in the Permian Basin. Based on a Railroad Commission of Texas report, Surge was one of only two internationally sponsored companies in the top 20 oil producers in the state of Texas in 2019. For more information, visit our website at www.SurgeEnergyA.com.
Contact Information
Travis Guidry
Director of Corporate Development & Investor Relations
Email: TGuidry@SurgeEnergyA.com
Phone: 832-333-2339
Investor Relations
Email: InvestorRelations@SurgeEnergyA.com
Phone: 832-333-2400