Eden Innovations Ltd V.EDE

Edge Resources

[ESSET]

FOR IMMEDIATE RELEASE

TSX Venture Exchange Symbol: EDE

AIM Exchange Symbol: EDG August 13, 2012

EDGE RESOURCES INC. Calgary, Alberta

 

Edge Resources Inc. Successfully Completes First Two Wells and Discovers New Oil Pool

Edge Resources Inc. ("Edge" or the "Company") is pleased to announce that after commencing the first phase of its summer drilling programme early, it has successfully drilled, cased and completed two wells in Primate, Saskatchewan, one of which has resulted in the discovery of a new pool. Both wells will commence production testing and pressure buildup analysis simultaneously. Additionally, the Company acquired 100% of the land it posted at a recent Crown land sale; adding 395 net acres of contiguous property to its existing Grand Forks oil asset.

In Primate, the Company had opportunistically secured the drilling rig, which was between wells on a nearby programme for another operator, on a short-term window. This allowed the Company to commence drilling earlier than it had planned.

The wells were successfully drilled to the primary target, the McLaren formation, at less than 850 meters, having passed through several other potentially hydrocarbon-bearing sandstones. On-site geological analysis and logs indicate no less than 12 meters of McLaren formation sands were encountered in both wells.

The Company is now equipping the wells for pressure buildup analysis and production. Production testing will commence immediately and will likely require four weeks, but possibly up to three months, before a stabilized production regime can be established, as is normal with all CHOPS ("Cold Heavy Oil Production with Sand") wells.

Brad Nichol, President & CEO, commented, "We are very happy with the initial geological results from these wells. We are especially pleased with the well drilled in the eastern section, which was previously given zero value on our reserve report.Our Primate asset continues to represent a wonderful opportunity to increase both oil production (and associated cash flow) and asset value. It was nice to drill the first two wells early and establish production in eastern section before drilling the rest of the programme."

The first well was drilled in an eastern section ("Asset East") of the Company's Primate, Saskatchewan property. This section is a non-producing section that immediately offsets a very actively-drilled area. As this section did not contain any producing wells, it was previously allocated zero value in the Company's reserve report and balance sheet. This new pool, described as a mid-Mannville heavy oil accumulation is offsetting a similar, but separate, pool to the east, which is believed to be currently producing over 2,000 bopd (barrels of oil per day).

The second well was drilled into the Company's existing, producing pool and encountered approximately 15 meters of net pay. This was the southernmost location into the existing pool to-date, which helped to further delineate and define a relatively undrilled area of the existing pool. After being perforated, this well was shut-in to commence a multi-day pressure buildup. Production testing will commence after several days of collecting pressure data.

Nichol added, "Given this initial success, we have already commenced a plan to shoot 3D seismic over the sections in Asset East. This will help us delineate this oil pool and assist us in choosing locations for additional wells. We hope to commence a seismic programme in Q4 of this year, after the crops are off the fields."

Additionally, the Company acquired 395 net acres of mineral land rights at a crown land sale, which increased the Company's land position in Grand Forks, Alberta, where the next phase of this summer's drilling programme is expected to commence.

For more information, visit the company website: www.edgeres.com or contact:

Brad Nichol - President & CEO

Phone: [phone]

 

OR

 

Merchant Securities Limited - Nominated Adviser and Broker

Lindsay Mair

Scott Mathieson

Catherine Miles

Phone: [phone]

 

OR

 

Buchanan - Financial PR

Tim Thompson

Helen Chan

Tom Hufton

Phone: [phone]

Email: [e-mail]