Edge Plans to Sell 9.2M Common Shares

Edge Petroleum Corp. on Tuesday announced its intention to offer 9.2 million shares of common stock, subject to market conditions. Edge will grant the underwriters a 30-day option to purchase up to an additional 1.38 million shares of common stock from Edge at the public offering price less the underwriting discount. Raymond James & Associates, Inc. and J.P. Morgan Securities Inc. will act as joint bookrunners for the common stock offering.

Edge intends to concurrently offer 2.0 million shares of Series A cumulative convertible perpetual preferred stock, subject to market conditions. Edge will grant the underwriters of the preferred stock offering a 30-day option to purchase up to an additional 300,000 shares of Series A preferred stock from Edge at the public offering price less the underwriting discount. J.P. Morgan Securities Inc. and Raymond James & Associates, Inc. will act as joint bookrunners for the Series A preferred stock offering. Edge has applied to list the Series A preferred stock on the NASDAQ Global Select Market under the symbol "EPEXZ".

The common stock offering and the preferred stock offering are not contingent upon one another. The common shares and the Series A preferred shares will be issued pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission.

Edge intends to use the proceeds from the offerings, along with borrowings under a proposed new revolving credit facility, to finance the pending acquisition of oil and gas properties from Smith Production Inc. and to refinance Edge's existing revolving credit facility. If the pending Smith acquisition is not completed in full or at all, Edge expects to use the remaining net proceeds from the offerings to repay outstanding indebtedness under its existing revolving credit facility, to fund its drilling program, to fund possible other acquisitions and for general corporate purposes.

Edge Petroleum Corporation is a Houston-based independent energy company that focuses its exploration, production and marketing activities in selected onshore basins of the United States.

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