EDE update. Edge Resources Inc. Provides Production Update
Edge Resources Inc. ("Edge" or the "Company") is pleased to announce that the first well of the Company's Spring drilling programme in Asset East (announced February 27, 2013), has been on production for the last thirty days and is producing better than expected.
The well has averaged approximately 50 barrels of oil per day ("bopd") over the majority of the initial production period but has recently increased to over 60 bopd, with production fundamentals indicating further production increases are possible.
The well encountered 8 meters of net pay and is being conservatively production tested using a progressive cavity pump to assist with the production of formation sand alongside the oil. Despite erratic production that is typical and expected of CHOPS wells, the well achieved an average rate of over 50bopd during the first month of production testing.
The current rate is the maximum production rate allowable with the production pump at its current setting. However, the pump rate can be increased at any time the Company chooses, and both pressures and fluid levels indicate further increases are feasible.
In these early stages of production, the Company is choosing not to produce this well at - or near - maximum capacity. The Company is conservatively producing near the low end of the production range, to promote stability and avoid heavy and sudden influxes of sand and/or water.
Brad Nichol, President and CEO of Edge commented, "This is an excellent result, and supports a very large development program in Asset East. The discovery of three new oil pools was a significant development for the Company; however, the continued successful delineation of the pools through our drilling programme is generating an even larger runway of drilling locations and, ultimately, more value for our shareholders."
Edge will utilize the downtime associated with Spring breakup to perform further analysis on Asset East, employing the Company's extensive base of proprietary 3D seismic in conjunction with log and production results. The Edge team will work to better define the size of the large prize in Asset East and continue planning for the large runway of drilling locations on the Company's 100% working interest land-base in Primate, Saskatchewan