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Edge Resources Inc. (LSE:EDG) has just turned a zero-value asset into a new oil field.
In a statement released today, Edge said it discovered a new pool to the east of its Primate project in Saskatchewan, Canada after drilling two wells that gave at least 12 metres of formation sands each, enough to merit 3D seismic by the fourth quarter of this year.
“We are very happy with the initial geological results from these wells,” stated Edge’s President and Chief Executive Officer, Brad Nichol, who can’t help but say it was “nice” feeling drilling these two wells early in the programme.
“Our Primate asset continues to represent a wonderful opportunity to increase both oil production (and associated cash flow) and asset value,” he added.
Commercial Potential
The east section of the Primate asset, which was acquired in February 2012 for CDN$8.8 million, had no producing well until Edge commenced its 2012 summer drilling programme.
The company believes the said well’s oil accumulation is similar to a nearby pool to the actively drilled east section, which, according to the company, can produce up to 2,000 barrels of oil per day (bopd).
Furthermore, multiple hydrocarbon-bearing sandstones were encountered before reaching its main target at a shallow 850 metres.
The company is now preparing for pressure build up analysis and production testing, which may take about four weeks to three months.
A 15-metre net pay was also encountered in the second well, which has now been shut-in for a multi-day pressure build up.
“Production testing will commence after several days of collecting pressure data,” Edge stated, referring to the second well.
Shares of the newly AIM-listed oil and gas firm continued its climb and were 28.2% higher to 25 pence by 12:43M GMT, following the news.
Company Spotlight
Edge Resources Inc. is an oil and gas exploration, production, and development company based and operating in Canada. The company was recently admitted to the Alternative Investment Market of the London Stock Exchange and have been dealing on the Toronto Venture Exchange under the symbol “EDE”.
