Edge Resources Inc.

Edge Resources Inc.

October 21, 2010 09:30 ET

Edge Resources Provides Operational Update-Fracturing Stimulation Results

CALGARY, ALBERTA--(Marketwire - Oct. 21, 2010) - Edge Resources Inc., (TSX VENTURE:EDE)(PINK SHEETS:EDGXF) ("Edge" or the "Company") announces that it has commenced its Q4 completion program after successfully performing fracturing stimulation (frac'ing) operations on the first four wells. The Company achieved AOF flow rates of up to 40 E3M3/day (1.4 mmcf/day) on cleanup and test on its Edmonton Sand shallow gas wells. The Edmonton Sands formations generally produce a high-quality natural gas with no associated water – there was no associated water production with these wells.

Additionally, the Company expects to receive approval from the ERCB for its pipeline project within the next few days and will then proceed to commence construction of more than 15 km of pipeline and dedicated shallow gas infrastructure. The Company will own and operate 100% of the infrastructure, which is expected to allow the Company to implement efficiencies and manage operating costs to a point that the Company would be able to generate positive operating cash flow at natural gas prices lower than $2/mcf.

Brad Nichol commented, "The team has utilized its industry connections to secure fracturing equipment at a time when the fracturing industry is running at full capacity with commitments to the major E&P firms. The results of our proprietary frac'ing techniques have once again shown our ability to far exceed industry average flow-rates in the Edmonton Sands. We are excited about continuing to build the company on our team's established reputation as Edmonton Sands leaders."

In addition to constructing the pipeline, the Company is constructing a dedicated shallow-gas compression facility. The facilities and pipeline are designed for current capacity of 5.0 mmcf/day with expandability to allow significant additional production in the future. The system will transport and process the Company's production, in addition to generating revenue through the compression, transportation and processing of third party production.

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.

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