Edge Resources Inc. Receives 99.6% Shareholder Approval
March 19, 2012
CALGARY, ALBERTA -- Edge Resources Inc. ("Edge" or the "Company") is pleased to announce that management hosted a special shareholder meeting on April 18, 2012 during which the shareholders voted heavily in favor of the sole resolution to approve the final $3,250,000 tranche in a $4,500,000 bought-deal financing with Henderson Global Investors Limited (“Henderson”).
The closing of the second tranche will make Henderson a 28.3% shareholder of the Company, which, according to TSX Venture Exchange policy, required shareholder approval. The shareholders of the Company voted 99.6% in favor of the transaction.
The net proceeds of the financing are intended for the development of the Company’s oil assets with the objective of significantly increasing production and reserves from the Company’s existing oil-producing properties in Primate, Saskatchewan and Grand Forks, Alberta.
Brad Nichol, President & CEO of Edge, commented, “It was an enormous show of support to see our shareholders vote so heavily in favor of this long-term strategic partnership between Henderson and Edge. I’m pleased that the value of this capital injection has been embraced by existing shareholders, who obviously see the significant oil-based potential of developing our new asset in Saskatchewan. We continue to see increasing competition from the majors in this hotly-contested area and our large land base fits contiguously in the midst of them.”
Additionally, the Company has entered into the following hedging contracts:
- 40 barrels of heavy oil per day from May 2012 to March 2013 with a swap price of $80.00 CDN per barrel based on Western Canadian Select prices
- 35 barrels of heavy oil per day from April 2013 to March 2014 with a swap price of $75.50 CDN per barrel based on Western Canadian Select prices
- 1,000 gigajoules of natural gas per day from May 2012 to December 2012 with a swap price of $1.76 CDN per gigajoule based on AECO prices
- 800 gigajoules of natural gas per day from January 2013 to December 2013 with a swap price of $2.70 CDN per gigajoule based on AECO prices
About Edge Resources Inc.
Edge Resources is focused on developing a balanced portfolio of oil and natural gas assets from properties in Alberta and Saskatchewan, Canada. The management team’s high drilling success rate is based on the safe, efficient deployment of capital and a proven ability to efficiently execute in shallow formations, which gives Edge Resources a sustainable, low-cost, competitive advantage.
About Henderson Global Investments Limited
Henderson Global Investors is a leading independent global asset management firm. The company provides its institutional, retail, and high net-worth clients access to skilled investment professionals representing a broad range of asset classes, including equities, fixed income, property and private equity. With its principal place of business in London, Henderson is one of Europe’s largest investment managers, with approximately £64.3 billion (CDN$101.3 billion) assets under management.
For more information, visit the company website: www.edgeres.com or contact:
Brad Nichol, President or
Nathan Steinke, Chief Financial Officer
Phone: +1 (403) 767 9905
Max Bascombe or Lindsay Mair
Merchant Securities Limited
Phone: +44 207 628 2200
This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company’s registered filings which are available at www.sedar.com.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Trading in the securities of Edge Resources Inc. should be considered highly speculative. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Historical Press Releases
This website contains historical and archived press releases for Edge Resources Inc. The information in these press releases is historical in nature, has not been updated, and is current only to the date indicated in the particular press release. This information may no longer be accurate and therefore you should not rely on the information contained in these press releases. To the extent permitted by law, Edge Resources Inc. and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission.