The shareholders of Edge Capital Ltd. (the “Company”) are pleased to announce the closing of the sale of the Company, including its operating subsidiary, Edge LRM Operations Ltd. (“Edge”). Edge is a junior oil and gas company with core properties in the Lloydminster area of Saskatchewan.
“We are thrilled to realize a tremendous result for our shareholders on our first iteration of the Edge model”, said Lex Ewen, CEO of Edge. “The goal of our model was to take ownership of properties that had higher asset retirement obligations and add value by accelerating the timeline for the cleanup of inactive well sites.” Since Edge’s transformative acquisition in April 2020, Edge has tripled its LLR ratings in both Alberta and Saskatchewan by a combination of efficient abandonment and reclamation execution and production optimization.
“We did exactly what we told the market we were going to do – enhance and clean up the properties”, said Ed Dancsok, COO of Edge. John Styles, Chairman of the Company, added, “Not only did we reduce environmental liability, we substantially increased production and made strategic tuck-in acquisitions that led to increased cashflow and serious tax protection. Our goal was to create a marketable asset and remove any hurdles for a new management team that was looking for an entry and a growth opportunity in the Canadian oil and gas space.”
The new management team is a Lloydminster-based group, led by Tracy Klotz. “Our team has been looking for opportunities to get into the heavy oil production business. This is the asset that checked all our boxes” says Tracy Klotz, President of Integrity Oil and Gas.
“The acquisition of Edge affords us a beachhead to push on to further acquisitions within the heavy oil space.” says incoming Chief Operating Officer Adam Waterman. “We expect to be able to materially improve production, as well as the netback per barrel from the assets, within their current cash flows. Our appetite for further acquisitions is shared by our chairman Dan Wiebe.”
Tracy and his team are keen to grow the production base and are actively looking for M&A opportunities. “We look forward to connecting with our new partners, making introductions and looking for growth opportunities and potential joint ventures.” The company will continue operations under the name of Integrity Oil & Gas Ltd.
The shareholders of the Company will continue to operate Edge Engineering and Geoscience Ltd. / Edge Liability Risk Management, as well as actively seek out new opportunities for asset deals that fit the “Edge Model”.
Contact:
Lex Ewen, P.Eng. – CEO
Edge Group of Companies
lex.ewen@edgecorp.ca
(306) 536-6509
www.edgecorp.ca
Tracy Klotz – President
Integrity Oil & Gas Ltd.
tracy.klotz@integrityoilandgas.ca
Edge Engineering and Geoscience Ltd. (“EEGL”) is a registered engineering and geoscience consulting firm that provides industry leading solutions to complex environmental scenarios in the energy, mining and industrial sectors. Edge Liability Risk Management is a division of EEGL that specializes in the abandonment and reclamation of oil and gas wells in western Canada.
Integrity Oil and Gas is a junior heavy oil and gas company focused on plays in east central Alberta and west central Saskatchewan.