OTCPK:EDEYF - Post by User
Post by
riptoron Nov 04, 2010 12:40pm
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Post# 17657817
drilling
drillingEdge Resources Initiates Drilling Program & Expects Regulatory Approval for Infrastructure Project
CALGARY, ALBERTA, Nov 04, 2010 (MARKETWIRE via COMTEX) -- EDGE RESOURCES INC. ("Edge" or the "Company") (CA:EDE 0.20, 0.00, 0.00%) announces that it has commenced its Q4 drilling program and has moved a drilling rig onto the first well of a significant multi-well drilling program. The rig will be drilling the initial phase of wells required under terms of previously-signed farm-out agreements. These agreements allow the Company to earn up to a total of 39 sections of prime Edmonton Sands prospective land. If the Company fully exercises its option, these 39 sections would complement, geologically and geographically, the Company's 12 existing sections.
Additionally, the Company has submitted license applications to the ERCB for approval to start construction of its dedicated low-pressure, shallow-gas infrastructure project, which includes a compression facility and more than 15 km of pipeline. The entire project has been designed to meet the bespoke needs required to optimize low-pressure natural gas production, meaning it (i) is scalable, (ii) requires relatively little capital and (iii) includes design efficiencies and features that allow the Company to keep operating costs below or near $1/mcf. ERCB approval is expected within a week, at which point construction will commence, which is expected to take between 4 to 6 weeks to complete.
Brad Nichol commented, "Phase 1 of the drilling program allows us to continue implementing our strategy of assembling a very high quality land base with a relatively small amount of capital while taking on very little operational risk," noting the Company's perfect 100% drilling success rate. Nichol added, "While this program is expected to result in production with an operating cost significantly below the industry average, the big win for us will be the earning and accumulation of a significant and exceptionally high quality land base that can be to more fully exploited in the future at a much higher gas price."