Edge Resources completes spudding of second well in Saskatchewan

8th Mar 2013 11:12

AIM-listed oil and gas exploration and production company Edge Resources has spudded the second well of the company's spring drilling programme in Primate, Saskatchewan. This second well is targeting a new oil horizon approximately 50m shallower than previously targeted zones in the area. Edge reported that the shallower zone had produced abundantly in both Alberta and Saskatchewan. Edge reported that it would utilise conventional, horizontal drilling techniques to enhance production and ultimate recovery from the new horizon.Because of the very high reservoir permeability, it said that the well would not require any stimulation or fracturing techniques, thereby minimizing capital requirements.Based on the company's base of proprietary 3D seismic, the second well is a test into a proven reservoir that is easily identified on 3D seismic and has previously produced commercial oil volumes from vertical wells less than 100m away. Edge said that this had successfully produced more than 100,000 barrels of oil per well, when drilled by a major exploration and production company nearby utilising the same technique.Brad Nichol, President and Chief Executive Officer of Edge commented: "This is truly an exciting development for Edge. This well, if successful will add more production, more reserves and even more drilling locations to our already-impressive inventory. "This shallower zone is prevalent across much of our existing 100% owned land base, as well as on nearby lands. Pursuing this new horizon brings the possibility of even more upside to our largely undeveloped asset base in Primate."The company has a 100% working interest in 20 sections of land in Primate, Saskatchewan.If successful, Edge reported that it intends to focus the majority of its efforts in Primate extensively on development of this new horizon and on the new Asset East project. Edge's share price was up 6.36% to 14.62p at 11:14 on Friday.