OTCPK:EDEYF - Post by User
Post by
jamesiebabieon May 30, 2014 9:38am
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Post# 22614022
Great new write up and 6 wells coming
Great new write up and 6 wells comingEdge Resources in "self-funded virtuous cricle" says Sanlam
By Philip Whiterow
May 30 2014, 11:24am
Edge can now fund any further drilling internally.Edge can now fund any further drilling internally.
Sanlam has raised its price target for Canadian oil group Edge Resources (LON:EDG) after the success of its recent drilling programme and better cashflows.
Edge can now fund any further drilling internally and as a result can commission six wells in the current year, more than previously forecast by the broker.
“Edge has employed an additional G&G [geological and geophysical] team to define drill targets at Eye Hill East. Three pools have been identified and we expect between 25 and 40 targets to be generated. The G&G team is also evaluating the wider Eye Hill property which could generate additional targets.”
February (C$1.1m) and March (C$1.2m) were record months for revenues while flow rates from the new wells were better than Sanlam expected.
An added kicker has come from the very strong heavy oil price while gas prices have also been high at an average C5.5/mcf recently.
Sanlam has raised its revenue and operating profit numbers for this year and the next to C$10.2 mln and C$2.3mln and C14.1mln and C$4.3mln respectively.
Earlier this month, Edge revealed a sharp rise in its reserves, most which was in the proved reserve category and that rose 72% year-on-year to 7.6mln barrels equivalent. Half of the incrae was attributable to the core assets at Eye Hill, Saskatchewan. Total proved reserve value was estimated at C$69.2mln, or around 23p a share.
'Buy' remains Sanlam's stance with a 14p price target.
Shares today were up 8% at 12p and have risen 48% this year so far.
https://www.proactiveinvestors.co.uk/companies/news/69016/edge-resources-in-self-funded-virtuous-cricle-says-sanlam-69016.html