Surge Energy US Announces Commitment to Sustainability

HOUSTON, April 7, 2020 /PRNewswire/ -- Surge Energy US Holdings Company ("Surge Energy") is renewing its focus on sustainability through emission control, conservation and corporate responsibility.

"Surge Energy places a high value on our responsibility to the environment. This is demonstrated by our proactive efforts and investment that minimizes our footprint." - CEO Linhua Guan

Emission Control
Surge Energy has taken a variety of actions to reduce our air emissions. These actions include:

    --  Practicing green completions;
    --  Avoiding the use of high-bleed pneumatic controllers;
    --  Instituting a successful leak detection and repair (LDAR) program;
    --  Building an electrical generating system that eliminated well-site
        generator emissions;
    --  Upgrading control devices and facilities to be more efficient; and
    --  >90% of oil production transported on pipeline which reduces trucks on
        the road and vehicle emissions related to our operations.

Surge Energy has made significant strides with respect to reducing the flaring of gas in connection with its operations. Flaring gas volumes have significantly been reduced on Surge Energy wells over the last 18 months. Flaring volumes in 2018 and 2019 attributed to Surge Energy were largely due to temporary reductions in third-party processing and takeaway capacity, including as a result of a fire at a gas plant that had been receiving our volumes and impacted the gas plant's operations into 2019. Since that time, Surge Energy has reduced flared volumes significantly, both on an aggregate volume basis and as a proportion of volumes and remains committed to continuing efforts to reduce flaring. Excluding third-party issues, gas volumes flared from Surge Energy wells over the last 18 months were minimal relative to Surge's total production and in line with top operators in the area.

Conservation
Surge Energy has conserved more than 60 MMbbls of fresh water through its leading produced water recycling efforts. We use recycled produced water in all of our horizontal hydraulic fracturing well completions in the Permian Basin and have implemented this practice as a program standard. We also take steps to reduce our environmental footprint by recycling our domestic rig water and mud cuttings, improving drilling efficiency by using pad drilling, and transporting our products through pipelines, reducing the need for trucking. Additionally, we conduct environmental reviews of all our drilling locations to understand and address any potential impacts to natural resources.

Corporate Responsibility
Surge Energy is committed to environmental stewardship and supporting the communities where we operate. We are a member of The Environmental Partnership, a landmark initiative that is committed to improving the energy industry's environmental performance. Surge Energy has invested in projects to improve overall environmental and safety performance. We have upgraded our facilities and our equipment to reduce emissions and installed safety shut-down systems and monitoring systems to safeguard our employees. Our commitment to the community is evidenced by support of local emergency responders and local FFA and rodeo programs. Starting in late 2017, we initiated use of regional sand for our hydraulic fracturing well completions, providing further support for the local economy.

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 96,000 net acres in the Permian Basin. For more information, visit our website at www.surgeenergya.com.

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SOURCE Surge Energy