Edge Petroleum is undergoing a self-evaluation in an attempt to beef-up its strategic planning.
John W. Elias, Edge's Chairman, President and CEO, said, "Working with Merrill Lynch, our financial advisor, we are continuing to conduct a thorough review and assessment of Edge's strengths and weaknesses, our competitive position and our asset base. After careful analysis, management and our Board of Directors believe that the best route to maximize shareholder value at this time is to focus on an assessment of a potential merger or sale of Edge. We are moving quickly to implement a process to explore this strategic alternative. We have not made a determination that the Company should be merged or sold and cannot guarantee that we will elect to consummate any such transaction. Consequently, we will continue to operate Edge in a manner designed to capture the most possible value for our shareholders. As a result of the process we are undertaking, we are not in a position to provide guidance about capital spending, production and cash flow at this time and any prior guidance is superseded. We are, however, in the process of selling a small group of non-core assets which are currently producing between 5 and 6 MMcfe per day and represents about 10 to 12 Bcfe of proved reserves. If successful, that sale should be effective late in the first quarter."
Edge does not expect to make further public comment regarding its strategic assessment process until the Board of Directors has approved a specific transaction or otherwise deems disclosure of significant developments to be appropriate.
Most Popular Articles