Edge Resources has signed an arms-length agreement with a private Alberta-based oil and gas company (letter of intent or LOI) to acquire certain producing, conventional oil and gas assets in Southern Alberta for $5.1m.

The acquisition is expected to close on or before 31 January 2011 and the company has arranged financing for the acquisition.

Through the acquisition, Edge is acquiring low-decline, high quality oil assets with a substantial land base and an underutilized, first-rate processing facility.

The area has been underdeveloped and contains 3D seismic over the majority of the existing land. Edge has also identified shallow gas targets on the land and in up-hole zones.

With this acquisition, Edge will be acquiring a partially developed, conventional, shallow oil play.