17th Jun 2013 07:01
FOR IMMEDIATE RELEASE
TSX Venture Exchange Symbol: EDE
AIM Exchange Symbol: EDG 17 June, 2013
EDGE RESOURCES INC. Calgary, Alberta
Edge Resources Inc. Announces Updated 51-101 Report and Reserve Update
Edge Resources Inc. ("Edge" or the "Company"), the Canadian focused oil and gas explorer, developer and producer, today issues its updated reserves report prepared by Deloitte LLP ("Deloitte").
·; Significant increase in Reserves and Net Present Value
·; Total Proved reserves (1P) increased by 21%, from 1.9 million barrels of oil equivalent ("boe") to 2.3 million boe
·; Total Proved + Probable reserves (2P) increased by 37.5%, from 4 million boe to 5.5 million boe
·; Net present value of Proved + Probable (NPV10%) reserves of CAD$87.3 million (Competent Person's Report ("CPR") of 31 May 2012, CAD$63.2 million)
·; Finding, Developing and Acquisition ("FD&A") including future development costs ("FDC") of $2.64 per boe on a Proved + Probable basis and $7.08 per boe on a Proved basis
Asset | Net attributable reserves | Net present value (M$) | |||||
Oil | Gas | NGL | Boe | ||||
Mbbl | MMscf | Mbbl | Mbbl | 0% | 5% | 10% | |
Total proved | |||||||
Grand Forks | 525.1 | 0.0 | 0.0 | 525.1 | 20,631.6 | 15,394.3 | 12,402.8 |
Willesden Green North | 0.0 | 4,757.2 | 0.0 | 792.9 | 6,788.3 | 4,936.6 | 3,669.8 |
Primate | 863.9 | 496.0 | 0.0 | 946.6 | 38,145.7 | 29,693.7 | 24,147.2 |
Abandonment | 0.0 | 0.0 | 0.0 | 0.0 | -5,454.2 | -3,218.0 | -2,229.7 |
TOTAL | 1,389.0 | 5,253.2 | 0.0 | 2,264.5 | 60,111.5 | 46,806.5 | 37,990.1 |
Proved plus probable | |||||||
Grand Forks | 749.1 | 0.0 | 0.0 | 749.1 | 33,694.5 | 20,874.4 | 15,496.0 |
Willesden Green North | 0.0 | 13,200.3 | 0.0 | 2,200.0 | 29,313.2 | 19,804.8 | 13,824.1 |
Primate | 2,425.4 | 794.8 | 0.0 | 2,557.9 | 119,451.8 | 80,826.8 | 60,068.7 |
Abandonment | 0.0 | 0.0 | 0.0 | 0.0 | -5,382.5 | -2,963.3 | -2,019.7 |
TOTAL | 3,174.6 | 13,995.1 | 0.0 | 5,507.1 | 177,077.0 | 118,542.7 | 87,371.0 |
Source: Above estimates provided by Deloitte LLP. | |||||||
Note: "Net attributable" are those reserves attributable to the AIM company after deduction of royalties | |||||||
bbl - Barrels | |||||||
scf - Standard Cubic Feet | |||||||
1 Boe = 6 Mscf | |||||||
Brad Nichol, President and CEO of Edge commented:
"We are delighted with the large increase in our reserve base and in particular the resulting low FD&A costs demonstrating the efficiency of Edge's operations and quality of its Technical team. The growth in our reserves follows an active drilling campaign by Edge throughout 2012 which we expect to generate further cash flow which we will re-invest in further exploration and drilling activities. The Company has demonstrated a record of successful acquisitions. Whilst the bulk of value continues to be created with the drill bit, it is reasonable to expect that opportunities for additional acquisitions will present themselves in the future. Edge will continue its strategy of focussing on acquisitions that expand and supplement the existing platforms and create shareholder value".
Competent Persons Statement
The preparation of the technical information contained herein was supervised by Al Bessel, P. Eng., a member of the Reserves Committee, who is recognised as a Qualified Person for the purposes of National Instrument 51-101, and who has reviewed and approved the findings in this press release.
To view Edge Resources' full 51-101 Report, please go to the company website (www.edgeres.com).
For more information, visit the company website: www.edgeres.com or contact:
Brad Nichol - President & CEO
Phone: +1 (403) 767 9905
Sanlam Securities UK Limited - Nominated Adviser and Broker
Lindsay Mair
Max Bascombe
Katie Shelton
Phone: +44 (0) 20 7628 2200
Buchanan - Financial PR
www.buchanan.uk.com
Louise Mason
Tom Hufton
Phone: +44 (0)20 7466 5000
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. Management has consistently focused on:
1. Shallow, conventional programs that typically offer reduced capital, operational and geological risks
2. Very high or 100% working interests and fully operated assets
3. 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.
Related Shares:
EDG.L