IRADESSO QUARTERLY - BMIR - Bryan Mills Iradesso

Junior SnapshotsiQ SNAPSHOTSTRATEGIC ACQUISITIONS, HIGH NETBACK LIGHT OIL PLAYSListing: TSXV-SGYShares outstanding: 31.1 million at June 30, 2010August 31, 2010 share price: $5.20Market capitalization: $162 millionNet debt: nil, $22 million of working capitalEnterprise value (market cap. + net debt): $140 millionQ2 2010 average daily production:Western AlbertaCentral AlbertaSouthern AlbertaManitobaCrude oil and NGLs 1,621 bbls/d 72%Natural gas 3.8 mmcf/d 28%Total 2,258 boe/d 100%OilGasCash flow netback:SGY $23.07-$50 $50Peer Median$14.92Strategies:• Target per share growth via acquisitions with a focused exploitation, development andexploration plan• Build an oil and liquids rich natural gas resource base through the identification andcapture of new and emerging resource plays• Continue to position Surge in early stage oil resource plays• Optimize base production and exploit significant undeveloped land base• Apply team’s expertise, experience, and proven track record to build core areas with:• Large scalable reserves• Significant undeveloped land• Available infrastructure• Multi-zone potential• Operatorship• All-season accessFocus of OperationsRecent News:August 26, 2010Surge announces second quarter 2010 resultsJuly 21, 2010Surge announces stock option grantsJuly 20, 2010Surge announces increase in bank line and closing ofpreviously announced acquisitionJuly 12, 2010Surge closes previously announced PrivateCo-1 acquisitionand acquires additional unit interest at Waskada insouthwest ManitobaContact:2300, 635 - 8th Avenue S.W.Calgary, Alberta T2P 3M3tel 403.930.1010info@surgeenergy.cawww.surgeenergy.caOfficersDan O’Neil - President & CEOMax Lof - CFODan Brown - COOMalcolm Adams - VP, Corporate DevelopmentMargaret Elekes - VP, LandKevin Angus - VP, ExplorationAnalyst Coverage:Cormark SecuritiesFirstEnergy Capital CorporationGMP SecuritiesMacquarie Equities ResearchNational Bank FinancialWellington West Capital MarketsDirectorsPeter BannisterPaul Colborne - ChairmanColin DaviesRobert LeachKeith MacdonaldDan O’NeilJames PasiekaMurray SmithThis company snapshot has been assembled by BMIR using publicly available information. The snapshot is not endorsed by the company profiled.26BRYAN MILLS IRADESSO • iq.bmir.com