CALGARY, ALBERTA -- (Marketwired) -- 04/17/13 -- Edge Resources Inc. (TSX VENTURE: EDE)(AIM: EDG) ("Edge" or the "Company") is pleased to provide a production update on the first well of the Company's spring drilling program in Asset East.
As previously reported (see April 2, 2013 announcement) this vertical well in Asset East was producing over 60 barrels of oil per day ("bopd") with production fundamentals indicating further production increases were possible.
Production from this well has now increased to over 90 bopd and it is providing further indications that additional production increases are possible.
The well encountered eight meters of net pay and is being conservatively production tested using a progressive cavity pump to assist with the production of formation sand alongside the oil. Despite some erratic production that is typical and expected of CHOPS wells, the well achieved an average rate of over 50 bopd during the first month of production testing.
Brad Nichol, President and CEO of Edge commented, "We are delighted with the early stage production from this well. Other than a couple of minor hiccups early on, we have not experienced many of the typical heavy influxes of sand that normally disrupt the initial few months of a typical CHOPS producer." Nichol added, "Our team has made good progress on the development plan for the three new, large oil pools discovered at Asset East, with detailed geophysical plans existing for 12 of the first 20 drilling locations. We look forward to the large drilling runway ahead of us in Asset East and believe there is a substantial resource to be developed."
Edge will utilize the downtime associated with spring breakup - a temporary period between winter and spring when the local counties restrict the movement of heavy equipment such as drilling rigs - to enhance the Asset East plan, which will utilize the Company's extensive base of proprietary 3D seismic in conjunction with log and production results.
About Edge Resources Inc.
Edge Resources is focused on developing a balanced portfolio of oil and natural gas assets from properties in Alberta and Saskatchewan, Canada. Management has consistently focused on:
1. Shallow, conventional programs that typically offer reduced capital, operational and geological risks2. Very high or 100% working interests and fully operated assets3. 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.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com.
Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.
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.
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Edge Resources Inc.
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