Surge Energy America Announces Agreement with Gravity to Install Produced Water Recycling Facility

May 24, 2022 – Surge Energy US Holdings Company (“Surge” or the “Company”) announces it entered into an agreement with Gravity Water Midstream, LLC (“Gravity”) to install a produced water recycling facility in Howard County, Texas. 

 Surge initially began utilizing recycled produced water for completion operations in 2017. This practice both conserves fresh water and reduces operating expenses. This new facility built with Gravity will be the fourth recycling facility commissioned to support Surge’s acreage position and will allow Surge to use recycled produced water in substantially all completions going forward while reducing the water volumes distributed to saltwater disposal wells in the area. 

 “Surge has a long track record of using recycled produced water for fracking as demonstrated by the conservation of over 3.5 billion gallons of freshwater since we initiated the practice in 2017 and we are now expanding this practice with this facility to the acreage acquired in 2021,” stated Linhua Guan, Surge’s CEO. “We are excited to expand our partnership with Gravity on this project based on both companies’ shared commitment to protecting the environment.” 

 “Gravity is excited to enter into this partnership with Surge as we continue to expand our produced water recycling operations leveraging our dominant Howard County produced water gathering, disposal, and reuse supersystem,” says Trace Hight, Gravity’s Chief Commercial Officer. “This project with Surge will mark the 5th E&P operator in Howard County we have helped this year to reduce their freshwater sourcing needs by increasing delivery of our cost-effective and environmentally friendly produced water recycling solutions.”

  About Gravity Gravity Water Midstream, backed by affiliates of Clearlake Capital Group, L.P., is a leading provider of water management services to oil and gas companies in the Permian and Bakken basins. Gravity owns and operates more than 50 active saltwater disposal wells with more than 1.5 million barrels per day of permitted disposal capacity with the leading market share position by volumes in the Midland Basin. More information is available at www.gvty.com. 

  About Surge Energy Surge Energy US Holdings Company 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. Based on a December 2020 Railroad Commission of Texas report, Surge was one of only two internationally sponsored companies in the top 20 oil producers in the state of Texas. Surge was the only oil and gas production company recognized by the Houston Business Journal’s Best Places to Work Lists in both 2020 and 2021. For more information, visit our website at www.SurgeEnergyA.com. 

Contact Information Travis Guidry Vice President of Corporate Development & Investor Relations Email: TGuidry@SurgeEnergyA.com Phone: 832-333-2339

Investor Relations Email: InvestorRelations@SurgeEnergyA.com Phone: 832-333-2400 

 For Gravity: Heather Heacock, (281) 640-3043 Marketing Communication Manager Heather.heacock@gvty.com