Edge Resources announces rise in oil output

17th Apr 2013 09:56

Edge Resources shares rose Wednesday after the company reported an increase in oil production at its Asset East licence in Western Canada.In an update on the first well of the spring drilling programme in Asset East, the company said production increased to 90 barrels of oil per day (bopd) compared to the previous 60 bopd announced on April 2nd.The well encountered 8.0 metres of net pay and is being tested to assist with the production of formation sand alongside the oil.It achieved an average rate of 50 bopd during the first month of testing despite initial erratic production that is typical with CHOPS (cold heavy oil production with sand)."We are delighted with the early stage production from this well," said President and Chief Executive Officer, Brad Nichol."Other than a couple of minor hiccups early on, we have not experienced many of the typical heavy influxes of sand that normally disrupt the initial few months of a typical CHOPS producer." He added that the company made progress on the development plan for the three new, large oil pools discovered at Asset East, with detailed geophysical plans existing for 12 of the first 20 drilling locations. "We look forward to the large drilling runway ahead of us in Asset East and believe there is a substantial resource to be developed." RD