new analyst's from London... City broker Sanlam began its coverage of Edge Resources with a ‘buy’ recommendation, highlighting the firm has transformed itself into a producer of oil, rather than gas.
It is possible that Edge could be producing 1,000 barrels of oil equivalent per day (boepd), 80% of which oil, within 24 months, said Sanlam analyst Charlie Long.
This, he says, will set Edge in a “very different and higher rated category” of junior exploration and production companies.
“Edge’s new oil production is from Eye Hill near Lloydminster, a heavy oil area regarded as one of North America’s most profitable plays,” the analyst said in a note.
“Edge has over forty high-grade well targets plus very significant undeveloped land holdings. Following a drilling campaign in December and the new production it delivered, Edge is now generating sufficient cash to self-fund drilling going forward.”