Edge Resources Inc.

Edge Resources Inc.

October 31, 2011 06:00 ET

Edge Announces Extension of $18 million Credit Facilities

CALGARY, ALBERTA--(Marketwire - Oct. 31, 2011) - Edge Resources Inc. (TSX VENTURE:EDE) ("Edge" or the "Company") is pleased to announce that its primary lending institution, Canadian Western Bank ("CWB") has confirmed credit facilities for the Company in the amount of $18 million. This amount represents an increase from the $17.35 million announced on July 6, 2011 and confirms the bank's additional support of the Company's recent acquisition (announced September 21, 2011).

CWB has undertaken a complete technical and financial review of the Company, as part of the planned semi-annual review process.

The review entailed a complete examination of current and historical reserves, production rates from all of the company's wells, and resulting cash flows from that production. The bank confirmed that they are completely satisfied with Edge's performance to date and extended their support to the strategy of the company, which is to focus on the acquisition of land versus increasing production in the near term.

Brad Nichol, President and CEO of Edge commented, "In spite of more than a 10% decline in near-term natural gas price forecasts and taking into account the reserves that we have produced to-date, our lenders reinforced that they are completely satisfied with our performance and their strong desire to remain Edge's primarily lending institution. The bank's support of our strategy to balance short-term cash flow generation with providing long-term shareholder value is critical to the continued implementation of our counter-cyclical strategy."

About Edge Resources Inc.

Edge Resources is focused on the exploration, development and production of shallow oil and natural gas horizons, most prominently 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 formations, 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.

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.

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.

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 & Director
    +1 (403) 767 9905

    Edge Resources Inc.
    Nathan Steinke
    Chief Financial Officer
    +1 (403) 767 9905