Kineticor Resource Corporation has entered into an agreement with Surge Energy Inc to convert flare gas into power for sale to SaskPower in Southwest Saskatchewan, Canada.

Under the terms of this agreement, Kineticor will develop and own the on-site power generation facility, which will capture associated gas that is currently being flared from Surges Shaunavon oil play.

Due to recent regulations imposed under the Saskatchewan Energy and Resource Directive S-10, strict guidelines have been imposed for reducing flaring, incinerating, and venting of associated gas in Saskatchewan. This project is the first of its kind under these new regulations.