Surge Global Energy Inc. (OTC: SRGG) signed a letter of intent agreement with Amazing Energy Inc. of Amarillo, Texas, to acquire for stock the controlling interest in Amazing Energy.
Amazing Energy controls 70,000 acres of oil and gas leasehold rights in the Permian Basin in Texas. Surge's acquisition includes Amazing Energy's 100% working interest in future well development in the Permian Basin, other leasehold interests and a majority shareholder ownership in Amazing Energy.
Amazing Energy has been participating in oil and gas exploration activities in Texas with leases in Pecos, Erath, Palo Pinto, and Parker counties, in Oklahoma with leases in Okfuskee County, and has the leasing rights for more than 70,000 contiguous acres in the Permian Basin. While Amazing Energy's oil and gas exploration is subject to the economic risks typically associated with exploration, the acreage to be developed is in an area of current and historic production.
"Amazing Energy has an impressive oil and gas management and development team we have come to know very well over the past year," said Clark Morton, Surge Global Energy CEO, in the release. "Amazing Energy currently has 15 oil and gas development wells drilled and each is in various stages of completion; gas contracts, oil take-off contracts and final negotiations are being completed for all needed midstream and plant processing operations for the Permian Basis acreage. We are proud of what the team has accomplished to date and we are all eager to complete the funding for this project, maximize the development process and bring about an increased realization of oil and gas reserves."
The closing of the transaction is subject to the terms and conditions in the agreement, the expectation of additional agreements to be entered into for funding, and the completion of financing for the company's anticipated additional oil and gas exploration properties.
Surge Global Energy Inc. is an exploration stage company engaged in the acquisition and development of oil and gas properties in the U.S. and Canada. The company is based in Palm Desert, Calif.