CALGARY, ALBERTA--(Marketwired - April 9, 2014) - Edge Resources Inc. ("Edge" or the "Company") (TSX VENTURE:EDE)(AIM:EDG) is very pleased to provide a further update following the Company's operational update released on March 3, 2014.
Total field production is currently over 750 boepd and has exceeded this rate since the second week of March. Importantly, production from the Company's newest CHOPS ("Cold Heavy Oil Production with Sand") oil wells continues to increase and the Company's total oil production is currently over 400 bopd.
Due primarily to additional production from the new CHOPS wells, average production, revenue and cash flow for the quarter ended March 31 is expected to be significantly higher than the previous quarter.
The increased CHOPS production is a result of a number of factors, including:
- Continued production increases over time from new wells. CHOPS wells typically exhibit a period of increasing production over the first year (compared to an unconventional well that will often experience significant declines in its first few years of production);
- Completion of a tie-in allowing one of the Company's oil wells to produce the associated natural gas without restricting its overall production rate; and
- Continued, improved production from the well that had previously been affected by a cementing issue.
Total revenues and associated cash flows have increased materially compared to the previously published quarter. Revenues from February's production exceeded CDN$1 million. This is the highest monthly revenue the Company has achieved since inception and the Company expects to exceed February revenues in March.
Brad Nichol, President and CEO of Edge commented, "We are on track for another excellent quarter. In addition to production increases, revenue and cash flow have also significantly improved. Our first million dollar revenue month in February was a major milestone for the Company and is a record we hope to break immediately in March." Nichol added, "Since mid-January, we have seen a material turnaround in both commodity pricing and heavy oil differentials, which coincided perfectly with the onset of new production from our latest CHOPS producers. Edge is currently enjoying strong cash flow that should allow us to continue to reduce debt and build up our cash resources to fund future drilling. We also look forward to seeing improved year-end reserves associated with the highly successful drilling program."
For more information, visit the company website: www.edgeres.com.
About Edge Resources Inc.
Edge Resources is focused on developing its heavy oil properties within a balanced portfolio of oil and natural gas assets from properties in Alberta and Saskatchewan, Canada. Management has consistently focused on:
- Shallow, vertical, conventional programs with reduced capital, operational and geological risks
- Very high or 100% working interests and fully operated assets
- Pools and horizons with exceptionally high reserves in place
The management team's very 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.
The term "bopd" means "barrels of oil per day." The term "boepd" means "barrels of oil equivalent per day."
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.