RE: RE: RE: RE: EDE update.Right language
Edge Resources Inc. spuds oil well, shoot 3D seismic and renew bank 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 National Bank of Canada ("National Bank"). The company drilled recently two oil wells in the Primate, Saskatchewan (see announcement 13 August 2012), and has now launched the first of two oil wells in Grand Forks, Alberta. Based on the early success of production results in the Primate, the company has committed itself also a 3D seismic to fine-tune the amount of additional drilling locations in the newly discovered primate oil pool. Fortunately completed National Bank recently its regular interim review, resulting in no changes in any of the terms and conditions of the Company's existing credit facilities.
The company recently launched the first of two wells in Grand Forks , where Edge is a 97% interest holder and sole operator of the wells and facilities in the area. these low-risk infill wells will use existing flow lines, and the company's oil gathering systems and oil battery . Both wells will be drilled directionally existing, producing websites to allow for (i) a more efficient tie-in to the existing infrastructure, (ii) reduced operating and capital costs, and (iii) a reduced environmental impact. Company currently produces approximately 100 BOE / day highly profitable medium-sized oils in Grand Forks.
Based on the early production results from Primate Edge has completed a 3D seismic. Company expects to shoot and evaluate approximately 10 square kilometers (3.7 square miles) of 3D seismic that will add to the company's impressive 65 square kilometers (25 square miles) existing, proprietary 3D seismic assets in Saskatchewan. focus of this program is to further characterize the drilling locations in the newly discovered oil pool called Asset east. Stretching However, seismic past the new pool at Edge's adjoining 100% owned, contiguous land, which may reveal further drilling facilities.
Brad Nichol, President and CEO of Edge commented, "We are sufficiently satisfied with the first results from the two wells in the Primate to shoot 3D seismic and perfecting the additional locations on our existing countries. Results in Primate has exceeded our expectations on many levels and production rate approaching stabilize and constantly increasing. " Nichol added: "We are also very fond of Grand Forks locations, which are being drilled into a well-understood, seismically defined reservoir., we expect production in operation within a few days after the these wells are completed. "
The Company is also pleased to have completed the regular interim review of the loan facilities with National Bank of Canada. Credit Facilities include a demand revolving facility with a limit of $ 12 million, a demand the development / acquisition facility with a limit of $ 6,500,000 and the risk management system. Rotating construction and development / acquisition facility each bear annual interest at the bank's prime rate plus 0.75% and 1.25% respectively. secured credit facilities in the first position against the assets of the company.
The central bank prime was 3.00% per 15 October 2012.
Nichol commented, "National Bank continues to be our best lenders and they continue to show a lot of support for the Edge. Their support and cheap lending continues to be a great tool in our efforts to maximize the return for our shareholders. Entry into force of the National Bank audit was the beginning of september, and therefore could not incorporate our latest production results. "
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