Edge Resources Inc. (TSX VENTURE:EDE)(EDG.L) ("Edge" or the "Company") is pleased to announce that it has completed shooting and processing a 3D seismic program in Primate, Saskatchewan one month ahead of schedule. The Company’s initial analysis of the seismic, which incorporated the recently discovered oil pool in what the Company calls Asset East, is that two additional new oil pools and several potential drilling locations have been identified.
Resulting from the discovery well drilled in Asset East earlier this year, the Company shot and evaluated 9.6 square kilometers (3.6 square miles) of 3D seismic (see announcement October 17, 2012), with the expectation of characterizing the newly discovered oil pool and identifying up to six additional potential drilling locations.
The Company's geological and geophysical team has identified more than 20 potential drilling locations within the three pools, based on 40 acre spacing. With additional spacing applications the potential drilling locations could increase fourfold.
The Company has a 100% working interest in the lands covered by the 3D seismic and the newly identified oil pools.
The seismic also suggests that future locations would likely benefit from structurally higher locations than the discovery well, which was originally drilled based on limited 2D seismic lines. As a result of the erratic CHOPS ("Cold Heavy Oil Production with Sand") producing regime, the discovery well realized 60-day estimated production rates ranging from 5 boe/day to 85 boe/day, with an average of 30 boe/day over that time period, while being restricted by surface facilities. The Company is currently evaluating the surface facilities that would be required to incorporate the scale of the potential future drilling locations.
Brad Nichol, President & CEO of Edge, commented, "The 3D seismic results have put us in a position to delineate the scale of a much larger-than-anticipated resource at Asset East. Our geoscience team has already identified drilling locations far in excess of their initial (pre-3D seismic) estimates, which were initially based only on the 2D seismic data. With this new 3D seismic knowledge, we can see several possible drilling locations that offer either a thicker zone, higher geological structure or both. Our next step is to weigh these locations up against the other locations we have in inventory and make the decisions on where to best allocate capital going forward so as to minimize operational, geological, reservoir and capital risks and maximize shareholder returns."
The Company is currently going through all available data to design, evaluate and implement a drilling program that incorporates these new discoveries and the other corporate drilling opportunities currently in inventory.