Surge's board of directors has approved a capital budget of $140 million for 2013 with a balanced approach of production growth (approximately 16 percent growth in average daily production per share) and unlocking additional value in its high quality, large DPIIP1 light oil assets.

Surge has allocated approximately $124 million to its 2013 drilling program, $9 million to waterflood implementation and optimization, $17 million to a combination of land, acquisitions, corporate and capitalized G&A expenditures and is planning $10 million of non-core dispositions late in the year. Surge is also pleased to announce that the Company's bank line was increased from $250 million to $290 million late in the fourth quarter of 2012, providing flexibility to execute the Company's 2013 capital program.

With this 2013 budget, Surge expects to achieve solid growth in average production per share and funds from operations per share while maintaining its balance sheet. Based on Surge's 2013 guidance, the Company is forecasting growth in funds from operation per basic share of more than 250 percent since the Company was recapitalized in 2010 with a compound annual growth rate of more than 50 percent over that time.

Tags: Surge Energy Inc.