Trailing only Saudi Arabia as the world’s largest known oil reserve, the oil sands of Alberta, Canada contain an estimated 175 billion barrels of buried oil. Alberta sits atop a multi-billion dollar oil sands reserve that could meet Canada’s energy needs for about 250 years, making it a gleaming spot on the map for oil and gas companies.Surge Global Energy (SRGG.OB) is an early stage oil and gas exploration and production company digging into the riches buried beneath the Canadian soil. The company also has an interest in Argentina as well, the Red Earth oil sands project in Northern Alberta, Canada; Sawn Lake oil sands project in Northern Alberta, Canada; and Santa Rosa Dome in the Cuyana Basin within the Mendoza province in Central Argentina.
“Regarding our portfolio of properties, our focus has been on areas in Canada and South America where large resources of oil and gas exist and political and fiscal risk is relatively minor,” said Chairman and CEO David Perez in a message from the board.
The oil sands of Alberta are attractive for oil and gas companies because of its sheer size and rich soil. The Canadian Oil Sands, covering an expanse of land comparable to the size of Florida, contain an estimated 175 billion barrels of recoverable oil.
Getting its hands dirty, Surge gained ownership of the Red Earth oil sands leases in the March 2007 acquisition of Peace Oil Corp. The leases are estimated to contain up to 2.52 billion barrels of original oil in place, which is up to 756 million barrels net to Surge, according to the letter. Additionally, Surge’s 11 percent interest in the Sawn Lake Oil Sands is estimated to contain up to 1.7 billion barrels of oil in place, or up to 185 million barrels to net Surge.
On the Southern end of the world, Surge Global holds a 17 percent working interest in the Santa Rosa Dome Project in Argentina. Though the dome has not yet been tested by drilling, seismic work indicates the likely presence of reservoir-quality rocks over the structure. The western half of the Cuyana Basin has produced roughly 970 million barrels of oil to date.
“Surge Global Energy will continue to strategically and proactively search for the best oil and gas resources to contribute to more reliable energy supplies. Surge continues to leverage its properties in order to invest in other strategic oil and gas resources,” stated Perez.
Shares of Surge Global were trading at 38 cents Tuesday afternoon.
