Surge Energy Inc. provided production guidance for the fiscal year 2019. For the period, the company expects average production of 22,000 boepd (84% liquids) and exit production of 22,000 boepd (84% liquids).

During the fourth quarter of 2018, the company drilled 14 (net) wells distributed across Surge's four core areas. Eight (net) of these wells were completed in fourth quarter 2018, while the remainder will be coming on production early in first quarter 2019. Of note, the Company drilled and rig released its first two light oil wells in the newly acquired Greater Sawn area. In the Sparky core area, Surge drilled its first infill horizontal well in the operated Sparky MM pool. This well was in close proximity to multiple legacy vertical producers, and is currently on-stream at 130 boepd after 30 days. This exciting result further supports Surge's large Sparky core area drilling inventory of over 400 (net) internally estimated drilling locations. With the significant decline in commodity prices in fourth quarter 2018, the Company has taken proactive measures to manage its assets and maximize cash flow from operating activities. As such, approximately 600 boepd of production has been restricted due to individual well economics, or delayed maintenance activities. These restrictions are expected to be in place until commodity prices recover to normalized levels.