Edge Resources Inc.

Edge Resources Inc.

July 12, 2010 09:00 ET

Edge Resources Adds More Land and Provides Operational Update

CALGARY, ALBERTA--(Marketwire - July 12, 2010) - EDGE RESOURCES INC. ("Edge" or the "Company") (TSX VENTURE:EDE) provides the following update on operational activities and continued land acquisitions: 

The Company has signed a farm-in agreement on an additional five sections of land in its core area, immediately contiguous to existing sections. The Company is required to drill, complete and tie-in one well on each section to earn a portion of the farmor's working interest in each section. Edge intends on adding these additional drilling locations onto its planned program, which is planned to commence in Q3 of this year. As these sections are in Edge's immediate core area, the Company expects to further increase operational efficiencies and economies of scale by utilizing a planned gathering system and infrastructure in the area. 

Regarding planned activities for this year, the Company has been working on two major projects for several months. The first is the construction of a wholly-owned, dedicated shallow gas gathering system and associated compression facilities. This gathering system will be dedicated to the specific requirements of shallow gas and is expected to result in extremely low operating costs. The Company's existing wells, wells drilled by Edge in the future, and wells belonging to other operators in the area, will be tied into this highly efficient system. The second major project is a 30 well drilling program, scheduled to start in Q3 of this year. The Company will take advantage of today's relatively low-cost drilling services and utilize a large project-style approach to drilling these wells very efficiently. This drilling program, combined with the infrastructure project, is expected to result in the creation of a major Edmonton Sands core production area, with Edge as the major player and operator.

Brad Nichol commented, "Despite many distractions our industry has offered, Edge has maintained its laser-like focus on building a very large Edmonton Sands presence. Our expertise in the Edmonton Sands is unmatched and, as demonstrated by this and other farm-in deals we have signed, our industry partners have taken notice. The infrastructure project will give us much more control over our production and, most importantly, our costs, which is critical for us to be cash flow positive at less than $3/mcf. The drilling program allows us to build a production base but also, more importantly, a land-base with a large inventory of low-risk, highly capital-efficient future drilling locations. I am very pleased that our team continues to execute the tactics that enable our growth strategy."

About Edge Resources Inc.

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 primarily on pursuing these highly prospective opportunities. 

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

(signed) "Brad Nichol"

Brad Nichol
President & Director

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