Eden Innovations Ord Shs V.EDE

EDE Announces Major Increase in Year-End Reserves

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o (reserves added/reserves produced during the year) was 458%. The Company has established a consistent track record of adding reserves at an exceptionally low-cost. During the 12 month period ending March 31, 2014 the Company's total Finding, Developing and Acquisition ("FD&A") costs were $3.8 million(1). Thus, Edge's FD&A cost of adding Proved reserves was $3.89 per boe and the FD&A cost for additional P+P reserves was $2.86 per boe. The table below provides a comparison of the Company's historical cost of reserve additions, year-end P+P reserve values and reserve replacement ratios: Year Ended FD&A Cost per Proved BOE ($) FD&A Cost per P+P BOE ($) P+P NPV10 ($)* Reserve Replacement Ratio March 31, 2014(1) $3.89 $2.86 $129.0 million 458% March 31, 2013 $9.14 $2.69 $89.4 million 749% March 31, 2012 $21.87 $10.24 $65.1 million 667% March 31, 2011 $10.16 $6.06 $46.5 million 3,725% March 31, 2010 $5.29 $2.08 $16.5 million n/a (1) Financial information is from Edge's preliminary unaudited financial statements for the year ended March 31, 2014 and is subject to change. FD&A costs for all years excludes Future Development Capital ("FDC"). Brad Nichol, President and CEO of Edge commented, "Edge's long-term strategic focus on conventional, shallow, low-cost, repeatable reservoirs continues to deliver shareholder value with reserve growth exceeding even our high expectations this year. What's more, in preparation for our reserve report, we only requested six additional drilling locations in Eye Hill East (less than 1/10th of what we believe we have to drill there), resulting in a large but very conservative value of reserves." Operational Update Wellhead production averaged over 700 boepd in March, provided revenue of $1.2 million, which allowed the Company to break the monthly revenue record previously set in February 2014. As a result, cash flow in March also significantly exceeded February's number. Due primarily to additional production from the new CHOPS ("Cold Heavy Oil Production with Sand") oil wells, average production, revenue and cash flow for the quarter ended March 31 2014 is expected to be significantly higher than the previous quarter. With production levels having held steady in April, the trend is expected to continue into the Company's first quarter, which ends June 30, 2014. Nichol commented, "As I stated last month, we are on track for another excellent quarter. As predicted, we beat our record-setting February million dollar month with an even bigger March and we expect April's figures, when finalized, to maintain this level." Speaking of the ongoing geoscience and engineering preparations for the upcoming 2014 drilling program, Nichol continued, "Our geological and geophysical teams continue to add more locations to our large drilling inventory in Eye Hill, most of which are not included in the reserve report. We are eager to exploit this inventory in 2014 and with the continued improvements in cash flow, we currently expect to fund future drilling activities utilizing existing cash reserves." Additional information may also be available at www.edgeres.com or www.sedar.com. About Edge Resources Inc. Edge Resources is focused on developing its heavy oil properties within a balanced portfolio of oil and natural gas assets from properties in Alberta and Saskatchewan, Canada. Management has consistently focused on: Shallow, vertical, conventional programs with reduced capital, operational and geological risks Very high or 100% working interests and fully operated assets Pools and horizons with exceptionally high reserves in place The management team's very high drilling success rate is based on the safe, efficient deployment of capital and a proven ability to efficiently execute in shallow formations, which gives Edge Resources a sustainable, low-cost, competitive advantage. * The Company's most recent NI 51-101 reserve report is effective March 31, 2014, and reserve values are based on pre-tax net asset value using AJM Deloitte's March 31, 2014 forecast pricing, discounted at 10%. Reserve values do not include abandonment liabilities, which are included at the corporate level. For comparative purposes, March 31, 2014 year end P+P reserve value, including abandonment liabilities, is CDN$127.0 million (compared to CDN$129.0 million when abandonment liabilities are excluded). The reserve report was prepared under Canadian National Instrument 51-101: Standards of Disclosure for Oil and Gas Activities. In accordance with National Instrument 51‐101 ‐ Standards of Disclosure for Oil and Gas Activities ("NI 51‐101"), the Company's oil, natural gas and natural gas liquids ("NGL") reserves were evaluated by an independent engineering firm, AJM Deloitte as at March 31, 2014. Gross reserves included in this release are Edge's working interest reserves before royalty burdens. Complete NI 51-101 reserves disclosure will be included in Edge's annual NI 51-101 filings which will be filed prior to July 31, 2014 and made available at www.sedar.com. The Company's aggregate proved and probable reserves are reported in barrels of oil equivalent (boe). Boe may be misleading, particularly if used in isolation. A boe conversion ratio for natural gas of 6 Mcf: 1 boe has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not necessarily represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. The term "bopd" means "barrels of oil per day." The term "boepd" means "barrels of oil equivalent per day." Unaudited Financial Information Certain financial and operating information included in this press release for the year ended March 31, 2014, such as capital expenditures, production, F&D costs and FD&A costs are based on unaudited financial results, and are subject to the same limitations as discussed under "Forward-Looking Information". These estimated amounts may change upon the completion of audited financial statements for the year-ended March 31, 2014 and changes could be material. Forward-Looking Statements This news release includes certain information, with management's assessment of Edge's future plans and operations, and contains forward-looking statements which may include some or all of the following: (i) anticipated production rates; (ii) expected results of capital programs; (iii) expected timelines for production optimization; (iv) net debt levels; (v) anticipated operating costs; and (vi) expected capital projects and associated spending; which are provided to allow investors to better understand the Company's business. By their nature, forward-looking statements are subject to numerous risks and uncertainties; some of which are beyond Edge's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, changes in environmental tax and royalty legislation, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources, and other risks and uncertainties described under the heading 'Risk Factors' and elsewhere in the Company's Management Discussion and Analysis and other documents filed with Canadian provincial securities authorities and are available to the public at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The principal assumptions Edge has made includes security of land interests; drilling cost stability; finance and debt markets continuing to be receptive to financing the Company, the ability of the Company to monetize non-core assets and industry standard rates of geologic and operational success. Actual results could differ materially from those expressed in, or implied by, these forward-looking statements. Edge disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com. This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. Trading in the securities of Edge Resources Inc. should be considered highly speculative. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Edge Resources Inc. Brad Nichol President & CEO [phone] Edge Resources Inc. Ward Kondas [phone] [e-mail] www.edgeres.com