Edge Increases Foothold in Edmonton Sands
Edge Resources 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.