Edge Resources Inc.
TSX VENTURE : EDE
PINK SHEETS : GDMHF

Edge Resources Inc.

September 14, 2009 06:00 ET

Edge Announces Significant Reserves Growth

CALGARY, ALBERTA--(Marketwire - Sept. 14, 2009) - Edge Resources Inc. (TSX VENTURE:EDE)(PINK SHEETS:GDMHF) ("Edge Resources" or the "Company") provides an update on its oil and natural gas reserves as follows:

The Company's reserves were reviewed for the period ended June 1, 2009 by AJM Petroleum Consultants ("AJM") in accordance with the rules provided by National Instrument 51-101. The Company filed its reserves data and other oil and gas information for the period ended June 1, 2009, as mandated by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators. Copies of this information may be obtained on www.sedar.com.

Brad Nichol, President of the Company, said, "We are very pleased with the updated reserve estimates and values, which do not yet include any value for our four recently drilled wells. The value of those, and any additional wells drilled before year-end, will be included in the Company's year-end NI 51-101 valuation." Nichol added, "In less than four months, during one of the worst market cycles in a decade, the Company has created more than $12 million in value with less than $3 million of capital. We are a hungry, aggressive team that is eager to continue creating shareholder value this way."

Highlights:

- Total proved estimated reserves increased from 0 to 421.5 Mboe as at June 1, 2009.

- Proved plus probable reserves estimates increased from 926.7 Mboe to 1,126.1 Mboe as at June 1, 2009.

- Estimated Net present value of proved plus probable reserves (using forecast pricing and discounted at 10 percent) before tax at June 1, 2009, totaled $11.9 million, an increase from $7.6 million.

Oil and Gas Reserves

The following table provides summary information presented in the AJM reserves update effective June 1, 2009 and is based on the AJM forecast prices. Some of the information contained herein summarizes certain information contained in the estimated AJM reserves update effective June 1, 2009. The Edge crude oil, natural gas liquids and natural gas volumes provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. The actual crude oil, natural gas liquids and natural gas volumes eventually recovered may be greater than or less than the reserves estimates provided herein.



Crude Oil NGL's
-----------------------------------------
WI Mbbls Net Mbbls WI Mstb Net Mstb
-----------------------------------------
Proved
Producing 0 0 0 0
Non-producing 0 0 5.5 3.8
Total proved 0 0 5.5 3.8
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Probable 0 0 9.2 6.0
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Total proved and probable 0 0 14.7 9.8
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Barrels
Natural Gas of Oil Equivalent
-----------------------------------------
WI MMcf Net MMcf WI Mboe Net Mboe
-----------------------------------------
Proved
Producing 0 0 0 0
Non-producing 2,496 1,817 422 307
Total proved 2,496 1,817 422 307
---------------------------------------------------------------------------

Probable 4,173 2,965 705 500
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Total proved and probable 6,669 4,782 1,126 807
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Notes:
(1) WI means, Edge's working interest (operating and non-operating) share
before deduction of royalties and excluding any royalty interest of the
Company.
(2) Net reserves means, Edge's working interest (operated and non-operated)
share after deduction of royalty's obligations, plus Edge's royalty
interest in reserves.
(3) A barrel of oil equivalent (boe) is derived by converting natural gas
to oil in the ratio of six thousand cubic feet of natural gas to one
barrel of oil equivalent. A boe conversion may be misleading,
particularly if used in isolation, as it is based on an energy
equivalency conversion method primarily applicable at the burner tip
and may not represent a value equivalency at the wellhead.
(4) May not add due to rounding.


Reserves Values

The before tax estimated future net revenues associated with Edge's
estimated reserves effective June 1, 2009 and based on AJM's forecast
prices effective March 31, 2009:

Forecast Prices - Net Present Value (Before Income Taxes)

Undiscounted Discounted
($M) 0% 5% 10%
---------------------------------------------------------------------------
Proved
Developed producing (379) (213) (126)
Developed non-producing 0 0 0
Undeveloped 4,668 3,486 2,566
---------------------------------------------------------------------------

Total proved 4,289 3,272 2,440
Probable 15,524 11,981 9,454

---------------------------------------------------------------------------
Total proved plus probable 19,813 15,254 11,894
---------------------------------------------------------------------------

Notes:
(1) The estimated future net revenues include the Alberta Royalty Tax
Credit.
(2) May not add due to rounding.
(3) Using AJM forecast commodity price assumptions effective March 31, 2009.


About the Company:

Edge Resources is focused on the development of natural gas from the Edmonton Sands group of formations, a conventional, shallow gas group of reservoirs located in Central Alberta, Canada. The Management Team's very high success rate is based on the safe, efficient deployment of capital and a proven ability to efficiently execute in shallow gas, specifically the Edmonton Sands, which gives Edge Resources a sustainable, low-cost, competitive advantage.

The Alberta Government estimates that there is 44 trillion cubic feet ("TCF") of non-producing, shallow natural gas in Alberta. Edge Resources' Management Team has evaluated over 20,000 sections of land and has identified over 200 "five-star" sections. The Company's development program focuses on pursuing only these highly prospective "five-star" Edmonton Sands prospects.

Visit the company website for more information: www.edgeres.com.

Brad Nichol, President & CEO

EDGE RESOURCES INC.

The term barrels of oil equivalent ("BOE") may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions herein are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

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.

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.

Contact Information

  • Edge Resources Inc.
    Brad Nichol
    President & CEO
    (403) 532-2411
    www.edgeres.com