CALGARY, ALBERTA--(Marketwire - Oct. 30, 2012) - Edge Resources Inc. ("Edge" or the "Company") (TSX VENTURE:EDE)(AIM:EDG) is pleased to announce the successful drilling, completion and equipping of two oil wells at its Grand Forks, Alberta property. The wells have already been tied-into existing pipelines and are being production-tested utilizing the Company's existing facilities.
The locations were chosen based on extensive analysis of 3D seismic and geological interpretation; and therefore, were considered low-risk drilling candidates.
The two new oil wells were drilled on Edge's Grand Forks property in Southern Alberta, where the Company holds a 97% working interest and is the operator of record. Based on the geological logs from the new wells, which showed better porosity and slightly more reservoir thickness than expected, the Company expects to significantly increase production at Grand Forks.
Prior to the two new wells, the Company's Grand Forks property was producing approximately 100 boe/day and the existing infrastructure is capable of handling more than triple that rate.
Brad Nichol, President and CEO of Edge, commented, "Our entire team is extremely pleased to have kept our 100% drilling success rate intact with these two latest wells. The high profitability associated with the medium grade oil production combined with very low, single-digit decline rates from the Grand Forks pool, should suitably improve our associated cash flow in the immediate and long-term. Additional locations in the pool previously identified will now be fine-tuned, based on the higher porosity and net pay we discovered in these new additions." Nichol added, "Our operational team was exceptional. Production on these two wells was brought on-stream less than a week after drilling was completed. The production is not expected to require an extended length of time to stabilize before results can be announced."
Edge also announces the issuance of 500,000 options to consultants of the Company at a strike price of $0.30/share. The options are vested over three years and expire five years after the date of issuance and are issued pursuant to the stock option plan of the Company.
About Edge Resources Inc.
Edge Resources is focused on developing a balanced portfolio of oil and natural gas assets from properties in Alberta and Saskatchewan, Canada. Management has consistently focused on:
- Shallow, vertical, conventional programs with reduced capital, operational and geological risks
- Very high or 100% working interests and fully operated assets
- Pools and horizons with exceptionally high reserves in place
The management team's very high drilling success rate is based on the safe, efficient deployment of capital and a proven ability to efficiently execute in shallow formations, which gives Edge Resources a sustainable, low- cost, competitive advantage.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward- looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com.
Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Trading in the securities of Edge Resources Inc. should be considered highly speculative. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.