2011-01-11-2011-01-06

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
5MM
Description

To buy certain producing conventional oil and gas assets in S AB, gaining 138 BOE/d.

Edge Resources Inc., Calgary, (Toronto Venture: EDE) plans to acquire certain producing conventional oil and gas assets in southern Alberta from a private Alberta-based E&P for $5.1 million.

The deal values production at C$36,954 per flowing barrels of oil equivalent and proved reserves at C$10.36 per barrel equivalent.

The assets are on the edge of the developing Alberta Bakken horizontal oil play. Production is 138 barrels equivalent per day (90% oil). Upside includes optimization, work-over and developmental drilling opportunities and additional up-hole potential in shallow gas.

Edge president Brad Nichol says, "Our team has pursued this opportunistic acquisition due to the excellent deal metrics and existing, stable cash flows from this primarily oil-producing, high working interest property. The current operator is focused strategically in other areas and has left several opportunities for us to further develop."

The deal is expected to close by Jan. 31.