Edge Resources delivers record first quarter

1st Sep 2014 15:10

The first quarter at North America-focused oil and gas group Edge Resources "couldn't have been better" after quarterly net profits reached a record, helped by higher revenues and improved netbacks.Sales reached 3.5m Canadian dollars in the three months to 30 June, up from C$2.3m the year before.Production was broadly stable compared with the fourth quarter at 613 barrels of oil equivalents per day (boepd) but up from 577 boepd in the first quarter of 2013.Oil netbacks, which represents oil revenues minus all the costs associated with getting the oil to a market, equated to C$49.14 per barrel, a 37% improvement on the previous quarter.This helped net profits rise to C$0.29m, compared with a loss of C$0.03m the year before.At the same time, estimates in May showed a 44% year-on-year increase in proved and probable reserves from Edge's projects to 7.6m boe.Net cash generated from operating activities totalled C$1.14m, up from C$1.03m previously."We are very pleased to have generated another record-breaking quarter. More revenue, more profit, more reserves and more cash - it couldn't have been better," said president and chief executive Brad Nichol.The company gave an upbeat outlook for prospects going forward after replacing a C$8m facility with a larger one of up to C$17m during the period at a significantly reduced interest rate. This has "drastically reduced the company's cost of capital and provides a larger pool of funds for future projects", it said.BC