Edge Boosts Production, Drills 3 Wells
Edge has completed the first three wells of a multi-well drilling program. Additionally, the Company has increased production by fracturing and tying two wells into its 100% owned and operated, dedicated shallow-gas infrastructure.
The drilling rig, on contract from Ensign Energy Services, moved to the Company's location directly from northern Alberta on March 14, 2011. The rig drilled the first of at least eight licensed locations, with several others soon to be licensed and drilled. The rig was released because of "spring breakup", a period during which the winter frost comes out of the ground and the various counties restrict the movement of large equipment over the roads.
Brad Nichol, President and CEO of Edge commented, "I'm pleased with the operational team's ability to have squeezed this rig into our drilling plan prior to break-up versus waiting until break-up is over and competing with many other companies for the rigs. I am equally impressed with how quickly my team reacted to the availability of fracturing equipment. On notice that the equipment was coming available, we immediately moved to put that equipment to work on our wells, and already have two of those wells producing into our own pipeline."
The Company commenced fracturing operations on several wells, after waiting since December 2010 for equipment to come available. The Company has successfully fractured two wells, both of which were immediately tied-into 100% owned and operated, existing shallow-gas infrastructure. Other wells will be fractured as part of this program but will not be tied-into pipeline until after spring breakup.
These two wells are flowing over 1,000 mcf/day (167 boe/day) on initial production, which adds significantly to the Company's total production mix. The Company is now generating significant revenue and positive cash flow on a monthly basis.
The Company has very low operating and F&D costs, and expects to be profitable at a natural gas price of less than $2.00/mcf.
Edge has now earned or acquired a total of 23 sections of Edmonton Sands natural gas property, each containing one drilled Edmonton Sands well. The Company has executed agreements that allow for up to another 27 sections of prospective Edmonton Sands land to be earned by drilling 1 well on each respective section.