CALGARY, ALBERTA — (Marketwire) — 09/21/11 — Edge Resources Inc. (TSX VENTURE: EDE) (“Edge” or the “Company”) is pleased to report that it has signed an agreement to purchase 175 boe/day of Edmonton Sands production for the purchase price of $1.8 million or $10,286/boe. The transaction has an effective date of April 1, 2011.
Commensurate with the closing, the Company–s current lending institution, Canadian Western Bank, has agreed to increase the Company–s existing credit facility by an additional $650,000.
Brad Nichol, President and CEO of Edge commented, “This acquisition is a rare opportunity to increase our existing foothold in the Edmonton Sands and is in our existing Edmonton Sands sandbox, which allows us to consolidate a key portion of our existing production.” Nichol added, “We expect to create several opportunities to improve operating efficiencies by re-routing production to our existing infrastructure and the possibility of future development on adjacent lands being brought into the same infrastructure. Finally, the exceptional terms of this acquisition indicate the current short-term view of the natural gas market that continues to create significant opportunities for Edge Resources. We look forward to signing more deals like this in the future.”
The transaction is expected to close in the first week of October, 2011, subject to completion of standard due diligence.
About Edge Resources Inc.
Edge Resources is focused on the exploration, development and production of shallow oil and natural gas horizons, most prominently 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 formations, 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.
For more information, visit the company website: .
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 .
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.
Barrel (“bbl”) of oil equivalent (“boe”) amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.
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.
Contacts:
Edge Resources Inc.
Brad Nichol
President & Director
+1 (403) 767 9905
Edge Resources Inc.
Nathan Steinke
Chief Financial Officer
+1 (403) 767 9905