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|mark10101: Jungmana, I am with you, the more I think about this the better I feel it is for EDG holders. I am not recommending anyone back up the truck but the move to TSX could be just what we needed. We know that there is no money swishing around London for oil stocks. Brad does not want to dilute at this level as it would be futile. Holding dual listing is an unecessary expense so although currently the trading volume is higher here in the UK when listed on the TSX the volume will increase there, certainly if accompanied by news. Brad is far more likely to pull off finacing in Canada than the UK so it is a logical step, the current situation for EDG was gridlock and collapsing share price. When we have been through this event it will likely to be the catalyst for the turn around we have all been waiting for.|
Red Rook, it's not pretty.
Very much over to the banks, they're already in breech of covenant regarding debt ratios to income and have been trying to find another lender on the same terms. Lol They'll decide it's future. Or it's peanuts as someone mentioned, off market. Or one of those benevolent Quaker principled "investors" we meet everyday.
Loans payable 11,044,712 Canadian
They need further monthly borrowings just to keep the lights on.|
|mark10101: Interesting we had the largest trading volume in months the trading day before this RNS. Good to see it settled. Tucked the bit about the funding partner right at the end but it was pretty obvious they would not convert at 5p with the share price down here.
Carpadium, what are plans b,c and d?|
|mark10101: Exactly, yet we still have people saying Brad should not focus on the share price. It should be his only focus if has aspirations of anything else. A strong share price allows cheaper and larger financing, the way Brad is care taking we will soon be a target ourself.|
|monkey puzzle: I've been saying it long enough now, Brad is not a risk taker, he is a caretaker....no wonder the share price and market cap is lousy now. Even the bottom fishers are staying away as there is rarely any news to give them even faint encouragement to buy into EDGE and why should they. It might well be cheap, but it was cheap a month ago, 3 months ago, 6 months ago, a year ago.....until Brad actually starts doing something I can't see this doing much except for the occasional drop or perhaps even an occasional spike, but the down trend is well established now. AIM shares live or die on newsflow or the lack of it in EDGE's case.|
|mark10101: Lazarus, I did not disagree but my point is look what LGO did with what they had, imagine if Brad engaged shareholders and increase interest in the way they did. LGO share price was like Wylie coyote the last six months. I sold LGO at 4p and invested in what I felt to be more robust companies, all of which have performed significantly poorly to LGO until recently regarding share price.
As you point out equity dilution is likely but as a current share holder I would like this equity raised at 5-10p rather than 2p where we are. This is where BRad needs to engage the market, I like his plan for the company and appreciate he can't make stuff up but he can keep his shareholders better. It was my criticism in 2014 and it is the same now. There is huge potential for edge which is why we all invested here, however I do want to make a return on my investment and like many here will need multiples from here just to breakeven.
Loads on here said they were going to add if we got to 5p and few did.|
|mark10101: I love that sort of comment. If Brad was successfully running the company we would not be 1/10 of many of our entry point and the share price would not need managing. His lack of comunication to the market means we have no momentum and little interest at a time where things are tough anyway. A few hundred thousand shares can add or wipe out 20% of share price value.
You are a big fan of LGO, I was in them in the early days and they showed exactly why managing the share price is a key part of life on AIM. They have managed to raise millions due to the strength of their share price and although things are tricky there ATM it has been invaluable to them, their market cap was defying the weak poo for a long while until there were technical issues. A huge following kept them strong while many oilers like EDG suffered in this tough climate, EDG IMHO has very similar prospects to what LGO had last year when they implement their strong drill campaign. Two similar companies one with excellent PR one with none.
EDG should be doing much better even in the current climate.|
|mark10101: Brad may find that given his terrible management of EDG's share price performance is now putting us into a category he said he would be taking advantage of.....
On paper EDG's current share price even at this level of POO is a back the truck up opertunity but due to Brad's ability for promoting the share we are just not attracting interest. Bonkers share price but when you have a bonkers manager that is what you get. His arrogance at $100 oil was inappropriate given his ability to deliver for shareholders at $45 he is looking a fool.|
|mark10101: Thanks Belgrano, good to get this update and it explains a lot with what has been going on with the company and share price (outside of the obvious oil price fall).
Makes me wonder what is the point of open and closed periods if this sort of information, which I personally believe is price sensitive, can now be discussed when it has not been clearly communicated to the market already.
Anyway that seems to be the way with EDG, there is clearly a great little company here where I have no fears for the money I have tied up disappearing for good, but better communication is needed to support the share price during such a tough period for the industry.
I used my wining from LGO's run this year having sold out at the toppy valuation of 4p to put into EDG in the 10-11p range believing it would be a safe haven. I put some of the other into other safe oilers, TRIN with Trinidadian production (same as LGO)currently standing at 3800bopd compared to LGO 1200 bopd for a massive market CAP of 100M. Crazily LGO is still around approx where I sold it and EDGE and TRIN are now in fractions of where they were.
The morel of the story is the share price appears to be a much greater reflection of inverter confidence in the management and the way they communicate than the fundamentals, something it would be good to see Brad get his head round.|
|hpotter: Edge Resources share price doubles as its low cost drilling from repeatable reservoirs increases shareholder value
09 Jun 2014 by Our Oilbarrel Staff
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President & CEO Brad Nichol
President & CEO Brad Nichol
Oilbarrel was talking to Brad Nichol President & CEO of Canada based and AIM- listed E&P Edge Resources recently and wondering out-aloud why the company's share price has more than doubled in the past year, having e gone from a 52 week low of 5.75 pence in London to 14.75p recently.
Brad, said: "I don't know exactly. We have been doing the same thing for the past three years as we are doing now. Maybe, the market has just caught up with the fact that our model works"There is no "maybe" about it; at least according to various brokers. On May 28 Sanlam said it was keeping its "BUY "recommendation and maintaining its target price of 14p for the shares. This was overtaken almost as soon as it was announced.
Earlier in the month on May 8 following a statement about reserves and targets share price Angel upgraded its price target by 18 per cent to 19p a share. The shares are back down to 14.25p at the moment but they look as if they are just pausing for breath, before moving ahead again.
So just what is the business model that seems to so successful? In the May 8 statement Brad said. "Edge's long-term strategic focus on conventional, shallow, low cost repeatable reservoirs continues to deliver shareholder value with reserve growth exceeding even our high expectations this year."
Brad told Oilbarrel that Edge eschews deep drilling with horizontal wells at 5000 feet, as in shale gas exploitation, which can cost millions of dollars if self funded. Instead it favours shallow 800 feet vertical well s looking for heavy oil.The company makes money on its heavy oil despite the traditional discount to light oil (in fact the gap is closing and Edge now gets around US$85 a barrel) because it uses low cost CHOPS ( Cold Heavy Oil Production with sand) rather than energy- intensive steaming. Wells come in at under US$700,000 a pop.
Calgary-based Edge has three assets in Alberta and Saskatchewan, Gilby, Grand Forks and what used to be called Primate but is now partly known as the 20 sections ( 1 sq km a section) Eye Hill Easr acreage. There is where most of the action has been in recent months, and only on a corner of the asset.
The robust economics of drilling has meant the company has drilled a lot of wells to upgrade reserves. In the May 8 a statement a Competent Persons Report (CPR) said the value of Edge's proved and probable (2P) reserves rose by 44 per cent to C$129 million (£70m) or 43p/share. Most of the growth was in the proved category which rose to 7.6 million barrels equivalent (boe) with half the rise attributed to Eye Hill East. Total proved reserve value was put at C$69.2m or around 23p a share.
Finding new reserves and reserve replacement is all fine and dandy, particularly as it has been done at a modest Some C$ 3.89m has been sent establishing new reserves,meaning the 2P reserves were booked at C$3.89 a barrel.But while boosting reserves is good for morale, it is transforming them into production that really counts. Here there has also been good news. Output in May was over 750 boepd against 577 boepd towards the end of 2013. Again the robust economics in the sense that because of CHOPS produced oil is now a 400 barrels a day component of the total, the netbacks are good. This in turn has meant revenues are the strongest they have ever been.
In February revenues were C$1m, a record for the company. In March they were even better at C$1.2 m. With this kind of cash flow all new drilling will be self- funding. The company has been able to announce that six new production wells will be drilled throughout the rest of the year more than previously forecast. Between 25 and 40 new targets for drilling have also been identified. This is what the company means by repeatable reserves. Watch this space for new milestones being achieved.
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Edge Res share price data is direct from the London Stock Exchange