CALGARY, ALBERTA -- (Marketwire) -- 01/31/13 -- Edge Resources Inc. (TSX VENTURE: EDE)(AIM: EDG) -
In light of our upcoming drilling program in February and the current volatility and uncertainty in both the equity and natural resources markets, I would like to summarize 2012 and provide a strategic and operational outlook for 2013.
2012 marked a year of major accomplishments and transition for Edge Resources and I am very pleased with the achievements we have made. Amongst these, and perhaps the most significant for shareholders, was the more than doubling of our share price while the natural resources sector, in general, saw significant declines in a challenging market.
Last year we promised to deliver both near and long-term shareholder value from potential acquisitions, and we did just that; in February, 2012 we closed an oil-focused acquisition in Saskatchewan. We initiated the development of that asset, which resulted in the discovery of a significant new oil pool. Then, with the help of a 3D seismic program, we discovered two additional potential pools. We are now undertaking the exciting and enviable duty of further definition and delineation of those new pools with our Q1 2013 drilling program.
Following the February acquisition, we introduced Henderson Global Investors, a CDN$100 billion investment manager, to our shareholder register. This association has provided the Company with a strategic partner to help provide access to capital in a capital-starved junior natural resources sector. As a result, in 2012 the Company secured over $10 million in equity financing, while most juniors could not raise capital necessary to develop their assets.
Shortly after the introduction of Henderson, we added some oil-based operational strength to our team. Monty McNeil joined as our Vice President of Operations. With more than 28 years of experience with some of the industry's biggest and best (Husky and Renaissance Energy, just to name a couple), Monty has extensive oil and gas knowledge that extends from the reservoir to the pipeline. From production optimization to drilling and completions, Monty has been a remarkable addition to our team.
2012 hosted a historical event for Edge, with a year's worth of effort paying off with the first day of trading on the London Stock Exchange's AIM board in July. With a European shareholder base of approximately 50% of Edge's total, the AIM listing provided additional liquidity (nearly doubling our trading volumes) and drastically increased our access to capital in a market that was essentially closed to junior oil and gas issuers. Edge trades under the symbol EDG on the AIM exchange in the UK.
Some of the highlights of the Company's 2012 achievements are summarized below:
-- The addition of 19 net (and gross) sections (12,160 acres) of 100% owned, undeveloped land in Primate, Saskatchewan-- The addition of approximately 350 boe/day of production in Primate, Saskatchewan-- NPV10 value increase of 36%, from $46.5 million effective March 2011 to $63.2 million effective March 2012(1)-- Addition of critical team members in engineering and operations-- Discovery of three new oil pools on previously undeveloped land in Primate, Saskatchewan