News blog

Edge Resources Inc

• BY: Andrew Hore |
• POSTED: 29/10/2013 |

Canada-focused oil and gas explorer Edge Resources Inc has agreed a new loan facility with its bank, which increase its interest charges.

National Bank of Canada has reduced the facility from $12m to $8m and increased the interest rate to prime rate plus 3% from prime rate plus 0.75%. Edge is using $7m of its facility and it is confident that cash flow from rising oil production will reduce that figure.

There is still available finance for a winter drilling programme in Eye Hill, where production results at existing wells are better than expected. Average production from the vertical well in Eye Hill East has risen to more than 130 barrels of oil per day and it could go higher.

The next wells will be near to existing production which should reduce risk. There are up to 100 potential drilling locations in Eye Hill.

Edge has cancelled its $6.5m loan facility for acquisitions because it is not practical to use this facility in current market conditions.

Vishnu Reddy has got a new job which means that he has to step down as a non-executive director of Edge.

At 8p a share, up 0.38p, Edge is valued at £10.3m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2013_49.pdf