Houston - Surge Energy US Holdings Company ('Surge' or the 'Company') announces a key milestone that the Company has returned to utilizing recycled, produced water in all completions.

As previously announced, Surge and Gravity Water Midstream, LLC ('Gravity') entered into an agreement to install a produced water recycling facility in Howard County, Texas. This facility was commissioned in July 2022 and enables Surge to recycle produced water for completions in the eastern area of the Company's acreage position which was primarily acquired in 2021.

Surge initially began utilizing recycled produced water for completion operations in 2017. This practice both conserves fresh water and reduces operating expenses. This newly commissioned facility is the Company's fourth recycling facility. The practice of using recycled produced water eliminates the need for freshwater as well as reduces the water volumes distributed to saltwater disposal wells in the area.

'Surge has been using recycled produced water for fracking for over five years which has resulted in the conservation of over 3.6 billion gallons of freshwatersince we initiated the practice in 2017,' stated Linhua Guan, Surge's CEO. 'The investment in this facility demonstrates Surge's commitment to responsible water management across our entire acreage position.'

About Surge Energy

Surge Energy 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 114,000 net acres in the Permian Basin.

Contact:

Travis Guidry

Tel: 832-333-2339

Email: TGuidry@SurgeEnergyA.com

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