Surge Power Inc.Declares $ 15 Million Public Providing of Circulate-Via Frequent Shares

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CALGARY, AB, April 28, 2021 / CNW / – Surge Power Inc. (“ascend“or the”Firm“) (TSX: SGY) is happy to announce that it has entered into an settlement with a syndicate of underwriters, led by Cormark Securities Inc. and Nationwide Financial institution Monetary Inc. (collectively, the”Subscribers“), pursuant to which the Underwriters have agreed to buy, on a” purchased deal “foundation, 25,425,000 Frequent Shares (the”Circulate-through shares“) of Surge to be issued as” flow-through shares “in respect of” Canadian improvement prices “as outlined in Revenue Tax Act (Canada) and the rules in pressure on the date hereof (the “Tax regulation“) at a value (the”Supply value“) of $ 0.59 per flow-through share, for gross proceeds for the corporate of roughly $ 15 million (the “Supply“).

Surge has granted the underwriters an choice to buy further flow-through shares, corresponding to fifteen% of the variety of flow-through shares bought beneath the providing on the providing value, for the needs of market stabilization and to hedge the over-allotments for a interval expiring 30 days after the cut-off date.

Surge will use the proceeds of the Providing to incur qualifying “Canadian improvement expenditures” inside the that means of the Tax Act in an combination quantity of no less than the gross proceeds of the Providing and forgo qualifying expenditures for purchasers of. flow-through shares. on or earlier than December 31, 2021. The proceeds of the Providing will fund an expanded 2S / 21 capital program, centered on the Firm’s core Sparky space.

The flow-through shares might be supplied by means of simplified prospectus in every of the provinces of Canada, apart from for Quebec, in accordance with Regulation 44-101 – Distributions of simplified prospectus and a few will be resold as United States pursuant to an exemption from the registration necessities of america Securities Act of 1933, as amended (the “US Securities Act“) and in these different jurisdictions outdoors Canada and United States as agreed by the Firm, in every case in accordance with all relevant legal guidelines and offered that no prospectus, registration assertion or comparable doc is required to be filed in such jurisdiction.

The closure is scheduled for or round Could 7, 2021 and is topic to the Toronto Inventory Trade and different needed regulatory approvals. The Firm intends to publish its 2H / 21 and preliminary 2022 forecasts after the closing of the Supply. Surge plans to launch its monetary statements for Q1 / 21 on the newest Could 14, 2021. The corporate expects manufacturing of roughly 16,500 bpy / d for Q1 / 21, and money movement from working actions is anticipated to be $ 15.6 million for Q1 / 21 (after estimation of the losses of protection realized $ 16.8 million over the quarter) with WTI oil costs on common US $ 57.84 per barrel.

The Circulate-Via Shares haven’t been and won’t be registered beneath the US Securities Act or any United States securities regulation, and will not be supplied or bought in United States or to, or on behalf of or for the good thing about, United States individuals absent from registration or any relevant exemptions from the registration necessities of the US Securities Act and relevant US securities legal guidelines. This press launch doesn’t represent a suggestion to promote or the solicitation of a suggestion to purchase securities in United Statesnor will there be any sale of such securities in any jurisdiction the place such a suggestion, solicitation or sale can be unlawful.

FORWARD-LOOKING STATEMENTS:

This press launch incorporates forward-looking statements. The usage of any of the phrases “anticipate”, “proceed”, “estimate”, “count on”, “might”, “will”, “plan”, “ought to”, “consider” and comparable expressions goals to establish ahead – wanting statements. These statements contain dangers, uncertainties and different recognized and unknown components which can trigger precise outcomes or occasions to vary materially from these anticipated in these forward-looking statements. Specifically, this press launch incorporates statements concerning the closing of the providing, using the proceeds of the providing, the tax remedy of flow-through shares and the timing of the waiver of improvement prices; anticipated manufacturing for Q1 / 21 and anticipated money flows from working actions and hedging losses for Q1 / 21.

Ahead-looking statements are primarily based on sure key expectations and assumptions made by Surge, together with expectations and assumptions concerning the efficiency of current wells and the success achieved by drilling new wells; deliberate spending, money movement and capital expenditures; the applying of regulatory and royalty regimes; prevailing commodity costs and financial circumstances; improvement and completion actions; the efficiency of latest wells; the profitable implementation of water injection applications; availability and efficiency of services and pipelines; the geological traits of the Surge properties; the profitable utility of drilling, completion and seismic know-how; figuring out duties for decommissioning; prevailing climate circumstances; alternate price; licensing necessities; the impression of accomplished installations on working prices; the supply and prices of capital, labor and companies; and the creditworthiness of trade companions.

Though Surge believes that the expectations and assumptions upon which forward-looking statements are primarily based are cheap, forward-looking statements shouldn’t be relied upon unduly, as Surge may give no assurance that they’ll show to be appropriate. As a result of forward-looking statements relate to future occasions and circumstances, by their very nature they contain inherent dangers and uncertainties. Precise outcomes might differ materially from these presently anticipated as a result of numerous components and dangers. These embody, however will not be restricted to, dangers related to the state of the worldwide financial system, together with commerce, public well being (together with the impression of COVID-19), and different geopolitical dangers. ; dangers related to the oil and fuel trade on the whole (e.g. operational dangers in improvement, exploration and manufacturing; delays or adjustments in plans with respect to exploration initiatives or improvement or capital expenditures; uncertainty of reserve estimates; uncertainty of estimates and projections associated to manufacturing, prices and bills and dangers to well being, security and the atmosphere); fluctuations in commodity costs and alternate charges and constraints within the availability of companies, antagonistic climate circumstances or disruption circumstances; uncertainties ensuing from potential delays or adjustments in plans with respect to exploration or improvement initiatives or capital expenditures; and the shortcoming to safe continued lender help for Surge’s financial institution line. A few of these dangers are described in additional element in Surge’s annual info kind dated March 9, 2021 and in Surge’s administration report for the interval ended December 31, 2020, each filed on SEDAR and accessible at www.sedar.com.

The forward-looking statements contained on this press launch are made as of the date hereof and Surge assumes no obligation to publicly replace or revise any forward-looking statements or info, whether or not because of new info, occasions future or in any other case, except that is the case. required by relevant securities legal guidelines.

Neither the TSX nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX) accepts duty for the adequacy or accuracy of this launch.

SOURCE Surge Power Inc.

For additional info: Paul Colborne, President and CEO, Surge Power Inc., Telephone: (403) 930-1507, Fax: (403) 930-1011, E-mail: [email protected]; Jared Ducs, Chief Monetary Officer, Surge Power Inc., Telephone: (403) 930-1046, Fax: (403) 930-1011, E-mail: [email protected]

Associated hyperlinks

http://www.surgeenergy.ca

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