TSX:SGYwww.surgeenergy.ca

April, 2014

“POSITIONED FOR SUSTAINABILITY AND GROWTH”

FORWARD-LOOKING STATEMENTSThis presentation contains forward-looking statements. More particularly, this presentation contains statements concerning anticipated: (i) potential development opportunities and drilling locations, expectations and assumptions concerning the success of future drilling and development activities, the performance of existing wells, the performance of new wells, decline rates, recovery factors, the successful application of technology and the geological characteristics of Surge’s properties, (ii) cash flow, (iii) the timing and amount of future dividend payments, (iv) oil & natural gas production growth during 2013 and 2014, (v) debt and bank facilities, (vi) hedging results, (vii) primary and secondary recovery potentials and implementation thereof, (viii) potential acquisitions, (ix) potential dispositions, (x) drilling, completion and operating costs, and (xiii) realization of anticipated benefits of acquisitions.

The forward-looking statements are based on certain key expectations and assumptions made by Surge, including expectations and assumptions concerning the performance of existing wells and success obtained in drilling new wells, anticipated expenses, cash flow and capital expenditures and the application of regulatory and royalty regimes.

Although Surge believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Surge can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in Surge’s Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com.

The forward-looking statements contained in this presentation are made as of the date hereof and Surge undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This presentation contains the term “netbacks” which is not a term recognized under IFRS Generally Accepted Accounting Principles (“GAAP”). The Company uses this measure to help evaluate its performance as well as to evaluate acquisitions. The Company considers netbacks as a key measure as it demonstrates its profitability relative to current commodity prices. Operating netbacks are calculated by taking total revenues (excluding derivative gains and losses) and subtracting royalties, operating expenses and transportations costs on a per boe basis.

Note: Boe means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boe/d means barrel of oil equivalent per day.

In this presentation: (i) mcf means thousand cubic feet; (ii) mcf/d means thousand cubic feet per day (iii) mmcf means million cubic feet; (iv) mmcf/d means million cubic feet per day; (v) bbls means barrels; (vi) mbbls means thousand barrels; (vii) mmbbls means million barrels; (viii) bbls/d means barrels per day; (ix) bcf means billion cubic feet; (x) mboe means thousand barrels of oil equivalent; (xi) mmboe means million barrels of oil equivalent and (xii) boe/d means barrels of oil equivalent per day.2

RECENT DEVELOPMENTS Q1/14 Drilling/Waterflood Results – Better Than Expected:

• 100% drilling success in Q1/14; exit rate increased to 16,850 boed (85% oil & NGLs) and 21,350 boed (84% oil & NGLs) proforma strategic business combination with Longview

• Large new pool discovery in the Upper Shaunavon 125 mm OOIP Discovery well is > 300 bopd > 64 additional locations!

Announced a $429 million Strategic Business Combination on March 31, 2014:• Adds more than 375 million boe of OOIP (1); post-closing Surge will have over 1.9 billion

barrels of light and medium gravity OOIP under the Company's ownership and management

• An excellent asset fit that is accretive on all metrics• Proposed dividend increase of 11%; to $0.60/share• Lowered “all-in” sustainability ratio to <89%

Solid Organic and Acquisition Reserve Results:• Replaced 196% of production through organic 2P reserve additions on F&D (incl.

change in FDC) of $17.03/boe achieving a 2.5x recycle ratio;• Four year weighted average F&D recycle ratio of 2.0x;• 2P reserve additions on FD&A (incl. change in FDC) of $27.27/boe (1.5x recycle ratio);

and• Increased Proved plus Probable reserves by 59% to 73.5 million boe

(1) Original Oil in Place (OOIP) is the equivalent to Total Petroleum Initially In Place (TPIIP) for the purposes of this press release. TPIIP is defined as that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered. There is no certainty that any portion of the undiscovered resources will be discovered. There is no certainty that it will be commercially viable to produce any portion of the resources. A recovery project cannot be defined for this volume of TPIIP at this time, and as such it cannot be further sub-categorized. as defined in this presentation.3

WHY OWN SURGE ENERGY?

Low risk, high quality, crude oil asset and opportunity base; >12 year RLI (with 2 years of FDC/cash flow); Very low “all-in” sustainability ratio (<89%); NO DRIP

Excellent replacement metrics/capital efficiencies (<$29,000/boepd); 10 year inventory of low risk development drilling locations; largely unbooked waterflood upside

One of the best balance sheets in peer group

Enterprise value(1) ~$1.4 billion; Market capitalization(1) >$1.1 billion; Excellent liquidity

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(1)Based on a share price of $6.30.

SURGE ENERGY INC.

Elite, operated, large OOIP crude oil reservoirs, with low recovery factors; over 1.5 Billion barrels of OOIP under management - with current recovery factor of 10%; proforma the LNV combination over 1.9 Billion barrels of OOIP under management

Strong balance sheet; ongoing risk management/hedging program

Experienced management team with proven track records

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KEY VALUE DRIVERS (RISK ADJUSTED)

1. 3-5% organic annual per share growth in reserves, production and cash flow; and

2. >8% dividend yield; and

3. Debt reduction (i.e. due to low sustainability ratio); increases NAV; and

4. Accretive acquisitions.6

ELITE, FOCUSED ASSET BASE

EXPOSURE TO >1.5 BILLION BBLS OF OOIP 10% OIL RECOVERED TO DATE

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EXCELLENT CAPITAL EFFICIENCIES / REPLACEMENT METRICS

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AreasLocations (Gross / Net)

Capital Efficiency

Rates of

Return%

Drill/ Complete/

Equip180 day IP

Mboe/well(on

primary)

Upper Shaunavon

(100/100)

Lower Shaunavon

(269/262)

Valhalla (46/38)

$18,950/boepd

$23,570/boepd

$14,300/boepd

78%

41%

130%

$2.00MM

$1.65MM

$4.3MM

105 boepd (100% oil)

70 boepd (100% oil)

300 boepd (66% oil)

125

70

672

Nipisi(37/37) $30,400/boepd 40% $3.8 MM 125 boepd (100%

oil) 150

Eye Hill/Provost - Sparky

(103/100)$18,800/boepd 100% $1.6 MM 85 boepd (100% oil) 100

Macoun (27/23) $15,700/boepd 57% $1.1MM 70 boepd (100% oil) 63

Sask Viking (138/112) $22,500/boepd 44% $0.9MM 40 boepd (100% oil) 33

SE Sask – Frobisher/Alida

(40/31)$24,000/boepd 64% $1.2MM 50 boepd (99% oil) 54

Manson (38/34) $27,500/boepd 26% $1.1MM 40 boepd (100% oil) 42

SUMMARY OF QUALITY OIL RESERVOIRS – LARGE OOIP(1) WITH LOW RECOVERY FACTORS

Property FormationOOIP

(MMbbls)Gross/Net

Drilling Location

sGross/

Net

Avg. WI

Cum Oil Recovery

Factor

Total Booked Independent

Recovery Factor P+P(2)

(% OOIP)

Internally Estimated Ultimate

Recovery Net (Waterflood

with Development

Drilling)

Western AlbertaDoig/Slave

Point/Bluesky

338/294 118/109 94% 1.6% 7.5% 22%

SE Alberta Mannville Group 472/389 143/137 84% 19.1% 23.2% 32%

SW Saskatchewan

Shaunavon/Viking 484/475 507/474 97% 1.0% 4.6% 12%

Williston Basin Mississippian Group 463/368 105/88 83% 15.2% 18.9% 21%

TOTAL 1,757/1,526 873/808 89% 10.0% 14.2% 22%

(1) December 31, 2013 reserves.(2) Based on independent engineering reports as at December 31, 2013 (including the SE Saskatchewan asset acquisition that closed on Feb

14, 2014).9

• Achieved Proved plus Probable (2P) F&D (incl. change in FDC) of $17.03/boe achieving a 2.5x recycle ratio.

• Achieved 2P FD&A (incl. change in FDC) of $27.27/boe achieving a 1.5x recycle ratio.• Organic proved plus probable reserve additions replaced 196% of production. • Increased Proved plus Probable reserves by 59% to 73.5 million boe. • Increased Proved plus Probable Oil and NGLs reserves by 79%.• Oil and NGLs made up 78% of the Company's total Proved plus Probable reserves.• Surge's Net Asset Value (NAV) is estimated at $7.03 per basic share based on NPV10 BT 2P

reserves of $1.497 billion.(2)

ELITE WATERFLOOD RESERVOIRS – LOW DECLINE

Current Waterflood Pilots

Area Formation Start Date

# of Injector

sAnalog

Property Comments

Windfall Bluesky Q4 2012 1 N/A 52,000 m3 injected; offset declines are flattening

Nipisi Slave Point Q2 2013 2 Gift 3rd injector in Jan 2014; results to date encouraging; . analog pool is commercial

Shaunavon Lower Shaunavon Q4 2013 5 Shaunavon Piloting 200 and 400 m spacing; 3 analog pilots

showing . strong oil response. Macoun Midale Q4 2013 1 Benson 1st hz injector in the pool; analog pool is commercial

Manson Bakken Q4 2013 2 Sinclair Initial results are encouraging; analog pool is commercial

2014 Waterflood Pilots Silver – Eyehill Sparky Q2 1-2 Wainwright New Q1/13 discovery; > 80 MM OOIP Silver – Provost Sparky Q2 1-2 Wainwright New Q1/13 discovery; > 45 MM OOIP

Valhalla Doig Q4 1 N/A Sask Viking Viking Q3 1 Dodsland

Current Properties Under Full Commercial WaterfloodArea Formation Start

Date 2014 Decline Current RF Booked RF Expected RF

Silver Lloyd/ Cummings 1996 18% 12.6% 35.7% 39.0%

Wainwright Sparky 1962 8% 32.0% 35.5% 37.1%

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• 342 MMbbls of OOIP (35-37 degree API)

• Current recovery factor 19.8% of OOIP

• Rates of return ~74% (1)

• 67 gross/54 net drilling locations (2) • Estimated 23% RF

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(1) Based on Year 1 price of C$ 93.00/Bbl Edm Par, US$ 96.00/Bbl WTI, C$ 3.50/GJ AECO, escalated at 2%/Year thereafter.

(2) As at January 1, 2014.

WILLISTON BASINSE Sask (Midale/Frobisher/Alida)

Surge Land

SteelmanMacoun

Alameda

Hastings

Silverton

RosebankIngoldsby

Gainsborough

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WILLISTON BASINManson (Bakken/Three Forks)

• 76 MMbbls of OOIP (35 degree API)• Current recovery factor 0.9% of OOIP• Rates of return ~40% (1)

• 38 gross/34 net drilling locations remain at Manson(2)

• 2 injectors have been implemented in Q3; exciting early response

• Based on successful waterflood implementation, Surge estimates ultimate recovery of at least 13% of the estimated 76 MMbbls of OOIP

(1) Based on Year 1 price of C$ 93.00/Bbl Edm Par, US$ 96.00/Bbl WTI, C$ 3.50/GJ AECO, escalated at 2%/Year thereafter.

(2) As of January 1, 2014.

Surge LandSurge Wells

Manson

SW SASKATCHEWANShaunavon (Lower and Upper)

• >350 MMbbls of OOIP in the Lower and Upper Shaunavon formations (medium gravity oil)

• Current recovery factor ~1.3% • Rates of return in excess of 50% (1)

• 369 gross/362 net drilling locations in the Lower and Upper Shaunavon based on 8 wells/section (2)

• >70 pump optimization opportunities with capital efficiencies of < $7,500/bopd

• Elite, operated facilities, including: pipeline connected battery, waterflood infrastructure, a nearby rail transloading facility, and an existing rail marketing arrangement

• Significant unbooked upside from the successful implementation of Q4 2013 waterflood as the assets are developed over time

(1) Based on Year 1 price of C$ 93.00/Bbl Edm Par, US$ 96.00/Bbl WTI, C$ 3.50/GJ AECO, escalated at 2%/Year thereafter.

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Surge Land Surge Wells

Surge LandSurge Wells

• >435 MMbbls OOIP (23-31 degree API oil)• Multi-zone, medium gravity crude at shallow depths

(<1,000 meters)• Current recovery factor of 19.1%• Low-decline, high ROR assets that provide stable cash flow

base• Continued positive oil response from expanded waterflood

initiatives in two zones• Control of key infrastructure• Rates of return in excess of 100% (1)

• 143 gross/137 net drilling locations (2) • Successful drilling/farm-in/acquisitions have resulted in

capture of two new Cretaceous oil pools in Silver Area (~125 MMbbls of OOIP combined)

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SE ALBERTASilver/Wainwright Area (Cretaceous Sands)

(1) Based on Year 1 price of C$ 93.00/Bbl Edm Par, US$ 96.00/Bbl WTI, C$ 3.50/GJ AECO, escalated at 2%/Year thereafter.

(2) As at January 1 2014.

Silver

Farm-in Lands

Wainwright

• Operated; high working interests• High netback >$55/bbl• Rates of return ~34% (1)

• 143 MMbbls of OOIP (37 degree API) in the Viking formation

• Current recovery factor 0.5% of OOIP• 138 gross/112 net drilling locations remain at SW

Saskatchewan Viking (2) • Potential waterflood upside

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SW SASKATCHEWANViking

(1) Based on Year 1 price of C$ 93.00/Bbl Edm Par, US$ 96.00/Bbl WTI, C$ 3.50/GJ AECO, escalated at 2%/Year thereafter.

(2) As at January 1, 2014.

Surge LandSurge Wells

Plenty

Dodsland

Forgan

Plato

WESTERN ALBERTAValhalla South / Wembley (Doig)

• >160 MMbbls of combined OOIP at Valhalla and Wembley (40 degree API light oil) • Rates of return of >130% (1)

• Current recovery factor ~2.4% (2) • 44 gross/37 net drilling locations at both Valhalla and Wembley• Continue delineating large pool extension to the North• Potential future waterflood candidate

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(1) Based on Year 1 price of C$ 93.00/Bbl Edm Par, US$ 96.00/Bbl WTI, C$ 3.50/GJ AECO, escalated at 2%/Year thereafter.

(2) As at January 1, 2014

Valhalla

Wembley

Surge LandSurge Wells

• 115 MMbbls of combined OOIP (35-42 degree API) in the Slave Point Formation at Nipisi North and Nipisi South

• Current recovery factor ~0.7% of OOIP• Rates of return of ~50% (1)

• 37 gross/37 net Slave Point and Gilwood drilling locations remain at Nipisi North and South (2)

• Commenced water injection during Q2 2013; exciting early response

• Based on successful waterflood implementation, Surge estimates ultimate recovery of at least 20% of the estimated 85 MMbbls of OOIP in the northern pool based on offsetting analogous waterflooded pools

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WESTERN ALBERTA Nipisi (Slave Point)

(1) Based on Year 1 price of C$ 93.00/Bbl Edm Par, US$ 96.00/Bbl WTI, C$ 3.50/GJ AECO, escalated at 2%/Year thereafter.

(2) As at January 1, 2014.

Reef Margin Edge

Nipisi South

NipisiGift

Analogue Slave Point Waterflood

Surge LandSurge Wells

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

Jan-15

Feb-15

Mar-15

Apr-15

May-15

Jun-15

Jul-15

Aug-15

Sep-15

Oct-15

Nov-15

Dec-15

$60.00

$70.00

$80.00

$90.00

$100.00

$110.00

$120.00 Strip - C$ WTI

Average C$ WTI Oil Hedge Floor Price

RISK MANAGEMENT/HEDGING STRATEGYOil Hedges

Average Oil Hedge Price

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• The Company has an orderly, on-going, risk management / hedging program designed to lock in future cash flows to protect the Company’s capex program and fund dividends.

• Surge has nearly 5,000 barrels per day of WTI oil hedged on average for 2014 at CAD$97.07, 2,750 barrels per day of WTI oil hedged at CAD$96.70 for the first half of 2015 and 2,000 barrels per day of WTI oil hedged at CAD$93.27 for the second half of 2015 .

• Surge has 7,586 mcf per day of AECO natural gas hedged at CAD$3.61 for the remainder of 2014, and 3,793 mcf per day of AECO natural gas hedged at CAD$3.87 for 2015.

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 20150

1,000

2,000

3,000

4,000

5,000

6,000

-5%

5%

15%

25%

35%

45%

55%

43%

50% 49% 49%

26% 26%

19% 19%

Oil Volume Currently HedgedPercentage of Current Net Oil Production Hedged

Time Period

bbl/d

% H

edge

d of

net

aft

er r

oyal

ty

volu

mes

WCS Differential Hedges

bbls/d hedged

WTI-less USD$/bbl

1H 2014 2,500 $21.872H 2014 2,000 $22.71

2015 2,000 $22.71

EDM Light Differential Hedges

bbls/d hedged

WTI-less USD$/bbl

Q1 2014 1,500 $8.23Q2 2014 2,500 $7.90Q3 2014 500 $8.70Q4 2014 500 $8.70

SURGE – POSITIONED FOR SUSTAINABILITY

• Low base decline 24%, high netbacks, excellent capital efficiencies

• Very low “all-in” sustainability ratio of <89%; NO DRIP

• Strong balance sheet; 2014 debt to funds flow ratio of <1.3x

• Ongoing risk management/hedging program protects cash flow

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SURGE – POSITIONED FOR GROWTH

• Focused, high quality, crude oil asset and opportunity base; core properties are 100% operated with working interests of >90%

• Elite, large OOIP crude oil reservoirs – with low recovery factors; >12 year RLI (only 2 years of FDC/cash flow)

• Over 800 low risk development drilling locations provide >10 year inventory

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Financial Institution Analyst Email AddressAltaCorp. Capital Don Rawson drawson@altacorpcapital.comBMO Capital Markets Jim Byrne jim.byrne@bmo.comCannaccord Genuity Anthony Petrucci apetrucci@canaccordgenuity.comCIBC World Markets Inc. Jeremy Kaliel jeremy.kaliel@cibc.caCormark Securities Inc. Todd Kepler tkepler@cormark.comDesjardins Securities Inc. TBD TBDDundee Securities Corporation Chad Ellison cellison@dundeesecurities.comFirstEnergy Capital Corp. Cody R. Kwong crkwong@firstenergy.comGMP Securities L.P. Grant Daunheimer gdaunheimer@gmpsecurities.comMacquarie Securities Group Ray Kwan ray.kwan@macquarie.comNational Bank Financial Dan Payne dan.payne@nbc.caParadigm Capital Ken Lin klin@paradigmcap.comPeters & Co. Limited Dale Lewko dlewko@petersco.comRaymond James TBD TBD

RBC Capital Markets Shailender Randhawa shailender.randhawa@rbccm.com

Scotia Capital Inc. Cameron Bean cameron.bean@scotiacapital.comTD Securities Juan Jarrah Juan.Jarrah@tdsecurities.com

ANALYST COVERAGE

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2100, 635 – 8th Ave. SW, Calgary Alberta T2P 3M3T: 403.930.1010 F: 403.930.1011

www.surgeenergy.ca

Advisors

Bankers:

National Bank of CanadaBank of Nova ScotiaCanadian Imperial Bank of CommerceATB FinancialToronto-Dominion BankJPMorgan Chase Bank, N.A.

Auditor: KPMG LLP

Legal Counsel: McCarthy Tétrault

Evaluation Engineers:Sproule Associates Ltd.McDaniel & Associates Consultants Ltd.

Registrar & Transfer Agent: Olympia Trust Company

Investor Contacts: Paul Colborne, President & CEOMax Lof, CFO

CORPORATE PARTNERS

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