Current Production Exceeds 2016 Exit Rate As a result of Surge's excellent development drilling results discussed above, together with continued successful waterflood results at Shaunavon, Eyehill, Nipisi, Silver, and Doe, Surge's current production has now exceeded the Company's previously announced 2016 production exit rate target of 13,000 boepd. This spot rate reflects a portion of flush production, but only partial contribution from the recent 14 well drilling program. Management now believe the Company is well positioned to exceed Surge's 13,000 boepd exit rate target for 2016. BANK LINE REDETERMINATION Surge has completed its semi-annual borrowing base review with the Company's syndicated group of lenders. As expected, the Company's borrowing base has now been renewed at $250 million.