FIRST ON CBS7: Surge Energy America completes longest known lateral in Permian Basin of 3.4 miles

HOUSTON, Tx (NEWS RELEASE) -- Surge Energy US Holdings Company ("Surge Energy") today announced that its wholly owned subsidiary, Moss Creek Resources Holdings, Inc., has successfully completed the longest known lateral in the Permian Basin.

The Medusa Unit C 28-09 3AH was safely and successfully completed and drilled out to total depth. As previously announced, this well is the longest known lateral in the Permian Basin with a total horizontal displacement of 17,935 feet (or 3.4 miles). The completion consisted of 52 frac stages utilizing TTS SlicFrac™ diverter technology to place 2,200 lbs of proppant per lateral foot.

This technological accomplishment was executed with service providers Universal Pressure Pumping for pumping services and GR Energy Services for wireline.

Initial production from this well is expected by the end of the third quarter.

"The successful drilling and completion of the longest known lateral in the Permian Basin demonstrates the strong culture of innovation at Surge Energy," stated CEO Linhua Guan. "We are extremely proud of our technical and operations teams in this record setting achievement."