Edge Resources Inc.
TSX VENTURE : EDE

Edge Resources Inc.

February 27, 2012 16:00 ET

Edge Announces Increased Bank Facilities and Refinancing

CALGARY, ALBERTA--(Marketwire - Feb. 27, 2012) - Edge Resources Inc. (TSX VENTURE:EDE) ("Edge" or the "Company") is pleased to announce that it has obtained credit facilities (the "Credit Facilities") with the National Bank of Canada as follows: a demand revolving credit facility with a limit of $12,000,000, a demand development/acquisition facility with a limit of $6,500,000, and a risk management facility. Part of the available amount under the revolving facility was used to repay all of the Company's credit facilities at the Canadian Western Bank. The revolving credit facility and development/acquisition facility bear interest at the bank's prime rate plus 0.75 percent per annum and 1.25 per cent per annum respectively. The Credit Facilities are secured against the assets of the Company.

In addition, the Company has entered into the following hedging contracts:

  • 90 barrels of oil per day from March 2012 to February 2013 with a swap price of $108.01 CDN WTI per barrel
  • and 60 barrels of oil per day from March 2013 to February 2014 with a swap price of $104.46 CDN WTI per barrel

Brad Nichol, President & CEO of Edge commented, "Conventional bank debt has funded a significant amount of our early growth at an extremely low cost and has been an important tool to maximize the value we have been able to create for our shareholders. Utilizing existing relationships, we have ensured the team at National Bank is acutely aware of our needs and is happy to become a supportive part of our future." Nichol added, "Given that low-cost conventional bank debt continues to be important to Edge's development, we felt it was important to hedge some of our oil production to provide a level of additional security that a floor price provides."

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. The management team's 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.

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 & Director
    +1 (403) 767 9905

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