CALGARY, ALBERTA--(Marketwire - Oct. 16, 2012) - Edge Resources Inc. ("Edge" or the "Company") (TSX VENTURE:EDE)(AIM:EDG) is pleased to provide the following update on Operations in Grand Forks, Alberta and Primate, Saskatchewan, and an update on the Company's borrowing facilities with the National Bank of Canada ("National Bank"). The Company recently drilled two oil wells in Primate, Saskatchewan (see announcement August 13, 2012), and has now spudded the first of two oil wells in Grand Forks, Alberta. Based on the early successful production results in Primate, the Company has also undertaken a 3D seismic program in order to fine-tune the multitude of additional drilling locations in the newly discovered Primate oil pool. As well, the National Bank recently completed its regular interim review, resulting in no changes to any of the terms or conditions of the Company's existing borrowing facilities.
The Company recently spudded the first of two wells in Grand Forks, where Edge is a 97% working interest holder and sole operator of the wells and facilities in the area. These low-risk infill wells will utilize existing flow-lines and the Company's oil gathering system and oil battery. Both wells will be drilled directionally off existing, producing sites to allow for (i) a more efficient tie-in to existing infrastructure, (ii) reduced operational and capital costs and (iii) a reduced environmental footprint. The Company currently produces approximately 100 boe/day of highly profitable medium grade oil in Grand Forks.
Based on the early production results from Primate, Edge has undertaken a 3D seismic program. The Company expects to shoot and evaluate approximately 10 square kilometers (3.7 square miles) of 3D seismic, which will add to the Company's impressive 65 square kilometers (25 square miles) of existing, proprietary 3D seismic assets in Saskatchewan. The focus of this program is to further characterize the drilling locations in the recently discovered oil pool known as Asset East. However, the seismic extends beyond the new pool onto Edge's neighboring 100% owned, contiguous lands, where it may reveal additional drilling opportunities.
Brad Nichol, President and CEO of Edge commented, "We were sufficiently pleased with the initial results from the two wells in Primate to shoot 3D seismic and hone the additional locations on our existing lands. The results in Primate have exceeded our expectations on many levels and production rates are getting closer to stabilizing and are continually increasing." Nichol added, "We're also very keen on the Grand Forks locations, which are being drilled into a well-understood, seismically-defined reservoir. We expect production to be on-stream within a few days after these wells are completed."
The Company is also pleased to have completed the regular interim review of its borrowing facilities with the National Bank of Canada. The Credit Facilities include a demand revolving facility with a limit of $12,000,000, a demand development/acquisition facility with a limit of $6,500,000, and a risk management facility. The revolving facility and development/acquisition facility each bear annual interest at the bank's prime rate plus 0.75% and 1.25%, respectively. The Credit Facilities are secured in first position against the assets of the Company.
The National Bank's prime rate was 3.00% as of October 15, 2012.
Nichol commented, "National Bank continues to be our preferred lender and they continue to show a great deal of support for Edge. Their support and low-cost-lending continues to be a great tool in our kit to maximize return for our shareholders. The effective date of National Bank's review was in early September; and thus, they were not able to incorporate our latest production results."
For more information, visit the company website: www.edgeres.com.
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.