Pinnacle Digest Announces First Natural Gas Featured Company Of 2009

The natural gas market is showing signs of strength and has rebounded from recent lows. Last week our team at Pinnacle took a very aggressive stance on natural gas as we have been researching this market for several months. After a long due diligence process, we are now prepared to introduce you to our first investment opportunity of 2009 in the natural gas sector.

We have chosen a natural gas company operating in one of the world's largest and most prolific natural gas regions, with a technical team that has a 100% success rate in the Edmonton Sands on 22 wells drilled since 2007.

Before we introduce our new Featured Company, you must understand the fundamental signs emerging in the natural gas sector which could point to a strong recovery. Supply is expected to fall as many current pipelines (uneconomic at these price levels) have been shut in. Many companies are relying on reserves to carry us through the winter. Natural gas prices were extremely low (rebounding from 7 year low) and investors, analysts and institutions are beginning to recognize the need for North America to shift towards a "home grown" cleaner energy.

In the hunt to discover our Featured Natural Gas Company of 2009, the most important goal was to find a company whose production costs were low enough that, unlike many natural gas companies, they would have the potential to profit in weak markets.

Key Fact: In the past few weeks the price of natural gas has rebounded to $4.70 USD/MMBtu.

Our new Featured Company is Edge Resources (EDE:TSXV), with production costs expected at $3.03 mcf. Edge Resources has the ability to be a very low-cost operator and is comfortable tying in its wells with the current natural gas price.

The competitive position of Edge is strengthened as a low cost producer in a low priced market, as they are able to pursue opportunities that many other firms cannot. To be more specific, the company explains that their $3.03/mcf cost of production, means Edge's breakeven natural gas price is more than $2.20 below (42% lower than) the breakeven price required by the rest of Alberta's natural gas industry.

Edge Resources' low cost production potential has allowed them to advance their assets (this past spring & summer) in the Edmonton Sands, one of the most prolific natural gas regions on earth.

The Willesden Green Project, located in the Edmonton Sands, Alberta is Edge's flagship asset. Analysts at Peters & Co. recently rated the Edmonton Sands in the Gilby/Willesden Green area one of the best natural gas plays in Alberta. Edge's project area was ranked third out of 23 plays for lowest finding and developing costs, highest rate of return, and lowest break-even price - a crucial component in any natural gas market.

Edge Resources has proven its ability to create value. Its previous drilling in 2009 on the Willesden Project was reviewed for the period ended June 1, 2009 by AJM Petroleum Consultants in accordance with the rules provided by National Instrument 51-101. The Willesden Project NI 51-101 report focused only on Edge's original 7 section land holding and was assigned 7.8 Bcf (billion cubic feet) of natural gas and related NPV (proved plus probable discounted at 10%) on those sections at $12 million.

Brad Nichol, President and CEO of Edge Resources explains what the above facts mean in much simpler terms, "In less than four months, during one of the worst market cycles in a decade, the Company has created...

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