Edge Resources restructures loan as financing conditions tighten

3rd Sep 2013 14:16

Oil and gas exploration outfit Edge Resources has today unveiled a slight increase in its first quarter revenues and cash from operating activities. More significantly, the outfit managed to reduce its working capital requirements via the renegotiation of a shareholder loan. Nevertheless, the decision to proceed with the above was motivated by the fact that the Canadian bank lending environment is tightening for the Company. Alongside all of the above Edge Resources announced what it termed as a very significant reserve increase.In the Company's core area of Eye Hill, the net present value of Proved (NPV10%) reserves increased by 225%, to C$24.15m.In operational terms, the water to oil ratios at the vertical oil well drilled last march are below 50%, which is significantly lower than the average for the area and much better than the Company's initial expectations, the firm explained. In its statement the company also references that there is still plenty of room to improve production at the above well, which is now running at "comfortably above 100 barrels of oil per day."Lastly, the firm believes that the excellent production results and very significant reserves increase in Eye Hill has verified its intentions to finance and drill the first 25 of up to 100 wells at Eye Hill. It also recognises the above lender's on-going support for the company. Shares of Edge Resources are rising by 23.81% to the 9.75p mark as of 23.81%. AB