Edge Resources Inc.: Operational Update-Pipeline License Approved & First Phase of Multi-Well Drilling Program Completed

Edge Resources Inc. announces that, further to its November 4, 2010 press release, the Company has now received full license approval from the ERCB to start construction of its dedicated low-pressure, shallow-gas pipeline project, which includes more than 15km of pipeline. Approval for the compression facility is expected within a few days.
The entire project has been designed to meet the bespoke needs required to optimize low-pressure natural gas production, meaning it (i) is scalable, (ii) requires relatively little capital and (iii) includes design efficiencies and features that allow the Company to keep operating costs below or near $1/mcf. Construction will commence immediately and is expected to take between 4 to 6 weeks to complete, depending on weather conditions.
Additionally, the Company has released the Ensign 430 drilling rig and crew, as the initial phase of drilling has been completed. The Company drilled and cased six wells into the Edmonton Sands Group of formations with 100% success and all wells will be completed and hydraulically fractured. The drilling went exceptionally well with no issues to report. Initial field costs indicate that this entire first phase of the program was completed under budget and under the expected time.
Brad Nichol commented, "Our team continues to exceed even our own operational standards and expectations. Our unique approach to drilling, and operations in general, make us one of the most efficient operators in the industry, with an F&D cost of less than $1/mcf." Nichol added, "We expect to kick-off the second phase of drilling in the next quarter and will continue our completions and frac'ing program as we seize opportunistic windows from the service companies."
Source: Press release