Edge Resources Inc.

Edge Resources Inc.

November 22, 2010 08:45 ET

Edge Resources Inc.: Operational Update-Pipeline License Approved & First Phase of Multi-Well Drilling Program Completed

CALGARY, ALBERTA--(Marketwire - Nov. 22, 2010) - Edge Resources Inc. (TSX VENTURE:EDE) ("Edge" or the "Company") announces that, further to its November 4, 2010 press release, the Company has now received full license approval from the ERCB to start construction of its dedicated low-pressure, shallow-gas pipeline project, which includes more than 15km of pipeline. Approval for the compression facility is expected within a few days.

The entire project has been designed to meet the bespoke needs required to optimize low-pressure natural gas production, meaning it (i) is scalable, (ii) requires relatively little capital and (iii) includes design efficiencies and features that allow the Company to keep operating costs below or near $1/mcf. Construction will commence immediately and is expected to take between 4 to 6 weeks to complete, depending on weather conditions.

Additionally, the Company has released the Ensign 430 drilling rig and crew, as the initial phase of drilling has been completed. The Company drilled and cased six wells into the Edmonton Sands Group of formations with 100% success and all wells will be completed and hydraulically fractured. The drilling went exceptionally well with no issues to report. Initial field costs indicate that this entire first phase of the program was completed under budget and under the expected time.

Brad Nichol commented, "Our team continues to exceed even our own operational standards and expectations. Our unique approach to drilling, and operations in general, make us one of the most efficient operators in the industry, with an F&D cost of less than $1/mcf." Nichol added, "We expect to kick-off the second phase of drilling in the next quarter and will continue our completions and frac'ing program as we seize opportunistic windows from the service companies."

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.

Brad Nichol, President & Director


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