Surge Energy Inc. has qualified to trade on the OTCQX Best Market, upgrading from the Pink Limited Market to provide U.S. investors with greater transparency. The oil-focused exploration and production company begins trading today on OTCQX under the symbol "SGYEF." U.S. investors can access current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com .

Upgrading to the OTCQX Market allows companies listed on a qualified international exchange to utilize their home market reporting for U.S. investors. To qualify for OTCQX, companies must meet high financial standards, follow best practice corporate governance, and demonstrate compliance with applicable securities laws.

Surge Energy is a Canadian public oil company producing 24,000 boepd, with 89% comprising light and medium gravity conventional crude oil. The company holds a dominant operational position in three of the top five most economic oil plays in North America. Its assets in Sparky and SE Saskatchewan offer large reservoirs, low recovery factors, high netbacks, quick well payouts, and a significant 12+ year development drilling inventory.

OTC Markets Group Inc. operates regulated markets for trading 12,000 U.S. and international securities. Its markets include OTCQX Best Market, OTCQB Venture Market, OTCID Basic Market, and Pink Limited Market. The OTC Link Alternative Trading Systems (ATSs) provide infrastructure for broker-dealers to facilitate trading.

Surge Energy Inc. has secured approval from the Toronto Stock Exchange (TSX) to renew its Normal Course Issuer Bid (NCIB), a move designed to return excess free cash flow to shareholders and enhance per-share metrics. The company’s Board of Directors and Management believe that prevailing trading prices do not always reflect the underlying value of the common shares, making repurchases an attractive opportunity to increase equity ownership for remaining stakeholders. The renewed program allows for the acquisition of up to 9,696,283 common shares, representing approximately 10% of the public float, over a twelve-month period commencing June 19, 2026.

Repurchase Authorization and Limits

The NCIB permits Surge Energy to buy back shares through open market transactions on the TSX, alternative Canadian trading systems, or designated exchanges such as CBOE Canada Inc., Canadian Securities Exchange (CSE), or Nasdaq CXC Limited. Purchases will be made at prevailing market prices. The total number of shares that may be repurchased is subject to a daily limit of 219,308 common shares, which represents 25% of the average daily trading volume of 877,233 shares calculated for the six-month period ended May 29, 2026. The company retains the option to execute one block purchase per calendar week that exceeds these daily restrictions.

Performance of Previous Bid

Under the current NCIB, which is set to expire on June 18, 2026, Surge Energy was authorized to repurchase up to 9,597,280 common shares. As of June 5, 2026, the company had repurchased an aggregate of 1,419,400 common shares at a weighted average price of $7.67 per share. This activity accounted for approximately 1.4% of the outstanding common shares when the expiring NCIB was originally approved on June 16, 2025. The company had 99,693,219 common shares issued and outstanding as of June 5, 2026.

Valuation and Capital Allocation

Management’s decision to renew the bid is supported by an independent reserve report for the year ended December 31, 2025, prepared by GLJ Ltd. The report indicates a Net Asset Value (NAV) of $11.04 per share for total proved reserves and $17.10 per share for proven and probable reserves, based on US$75 WTI flat pricing. Currently, Management is allocating up to $5 million per month towards share buybacks under the NCIB. Additionally, the company expects to improve sustainability by avoiding dividend payments on the shares it repurchases.

Automatic Repurchase Plan

Surge Energy intends to implement an automatic repurchase plan with a designated broker to facilitate purchases during periods when the company is typically restricted from trading due to regulatory rules or self-imposed blackout periods. This plan will operate in accordance with TSX parameters and applicable Canadian securities laws. Any shares acquired under the NCIB will be cancelled. The renewed bid will expire no later than June 18, 2027.