News Column

Edge Resources Increases Reserves On Eye Hill Development

May 8, 2014

Tom McIvor

LONDON (Alliance News) - Edge Resources Inc Thursday said it has significantly increased its year-end reserves after finalising a Competent Person's Report of its operations.

The Alberta, Canada-focused company said the value of its proved and probable reserves increased by 44% to CAD129.0 million at March 31 from CAD89.4 million a year earlier, with particular growth in its proved reserve value.

The company said its total proved, developed and producing reserve value increased 75% to CAD34.2 million, contributing to a total proved reserve value of CAD69.2 million.

Edge Resources' proved and probable reserves increased to 7.6 million barrels of oil equivalent, half of which was generated by its core asset, Eye Hill.

"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," Chief Executive Brad Nichol said in a statement.

The news comes after the company announced in April that it was on track for an "excellent" fourth quarter ended March 31, as it saw production increase and revenue and cash flow improve.

At the time, it said that current field production is over 750 barrels of oil equivalent per day, and this rate has been exceeded since the second week of March.

On Thursday, the company said its wellhead production averaged 700 barrels of oil equivalent per day in March, providing revenues of CAD1.2 million and its trend of improved production is expected to continue through the company's first quarter.

Edge Resources shares were up 5.6% to 8.31 pence Thursday.

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Source: Alliance News