EDE-V Shareholders,
The attached news release provides another update on our drilling program. We’ve just moved a rig to the second location and should be finished drilling in a handful of days. This well is being drilled horizontally into a new zone, which should bring some nice production and, most importantly, set the runway for a whole new development program – in addition to our Asset East runway. We’ve seen from our 3D seismic that this new zone exists in channels across a lot of our undeveloped land so the upside here is a bunch of additional drilling locations along with increased production and associated cash-flow.
As a bit of an aside, the Canadian heavy oil differentials we keep reading about have been drifting back in-line and are only a couple of dollars off normal! This nice bump should help improve near term revenues and hopefully it holds for the remainder of the year, at least!
While we have additional wells planned after this one, road conditions are starting to look soft (despite all the snow and cold we’ve hand in Calgary the last few days!). Hopefully things will stay cold and cloudy for the next week or so and the county will let us move the rig to another location.
As always, I am circulating you this email because we’ve met in the past, you’ve expressed an interest in the company, you’re currently a shareholder and/or you’ve requested that I send you updates. Whatever the case may be, if you prefer not to receive these updates, just drop me a line and I will take you off the distribution list immediately.
If you have any questions about this news – or anything else about what Edge Resources is doing, please don’t hesitate to contact me directly.
Thanks for the support and best regards,
Brad Nichol - President & CEO
1 403 767 9905
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Edge Resources spuds second Primate well
March 8, 2013 - News Release
Edge Resources Inc. has spudded the second well of the company's spring drilling program in Primate, Sask. This second well is targeting a new oil horizon approximately 50 metres shallower than previously targeted zones in the area. This shallower zone has produced abundantly in both Alberta and Saskatchewan. Edge will be utilizing conventional, horizontal drilling techniques to enhance production and ultimate recovery from this new horizon.
Because of the very high reservoir permeability, the well will not require any stimulation or fracturing techniques, thereby minimizing capital requirements.
Based on the company's extensive base of proprietary 3-D seismic, this second well is a test into a proven reservoir that: (i) is easily identified on 3-D seismic; (ii) has previously produced noteworthy, commercial oil volumes from vertical wells less than 100 metres away; and (iii) has successfully produced more than 100,000 barrels of oil per well, when drilled by a major exploration and production company nearby utilizing the same technique. |
