Edge Resources Inc.
FOR IMMEDIATE RELEASE
TSX Venture Exchange Symbol: EDE
AIM Exchange Symbol: EDG October 16, 2012
EDGE RESOURCES INC. Calgary, Alberta
Edge Resources Inc. Spuds Oil Well, Shoots 3D Seismic and Renews Banking Facilities
Edge Resources Inc. ("Edge" or the "Company") 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 programme 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 programme. 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 programme 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 or contact:
Brad Nichol - President & CEO
Phone: +1 (403) 767 9905