Edge Petroleum Sees 84% Exploration Success Rate
Edge Petroleum says since June 30, 2006 the company has drilling nine wells with all of them being successful, resulting in a year to date total of 44 wells drilled with an 84% apparent success rate. One well in the south Texas Queen City trend is currently drilling and in Arkansas in the Fayetteville shale trend, one well is waiting on completion and another is waiting on a rig to drill the horizontal section.
Edge's Patterson #2 well (Edge operated, 75% W.I.) was announced previously with an apparent 152 feet of net pay and the potential for deep pay from an unlogged section. A completion rig has commenced work on the well and an additional 44 feet of net pay was logged in the upper portion of the lower Hosston section, bringing the total apparent net pay in the well to 196 feet. Completion operations are underway in the lower Hosston with initial test results indicating these sands to be oil productive. We plan to make this well a dual completion in the lower Hosston and the James Lime section. The Middle and upper Hosston apparent pay zones will remain behind pipe, to be captured at a later date.
Edge's Dreier #1 well (Edge 13% W.I.) in Goliad County, Texas continues to produce at approximately 8.5 MMcfe per day gross, from the lower of three productive sands. In late July, an offset location was spud, the Salyer- Sherman #1 (Edge 25.6% W.I.). That well was recently logged and found a similar sand to the one producing in the Dreier well. As previously announced, Edge's drilling program in its Chapman Ranch Field in Nueces County, Texas has been deferred into 2007 due to both the need to acquire new 3-D seismic data and partner issues. The operator and 50% W.I. partner, Kerr- McGee, has recently been acquired. As a result of these issues, Edge has decided to move forward with the seismic acquisition on its own so as not to further delay the resumption of expected drilling operations.
In its emerging Fayetteville Shale play, Edge now expects to participate in a total of at least four non-operated wells by year-end and is working to spud two to three operated wells by year-end. Edge expects to have about a 9% W.I. in two of the four non-operated wells and about 15% W.I. in the other two. Edge's working interest in its operated wells should range from 45% to 62%.
John W. Elias, Edge's Chairman, President & CEO, commented on operations noting, "Our hopes and expectations about our ability to better image the deep potential in the Mississippi Salt Basin with re-processed and new 3-D seismic data were borne out in the apparent results of the Patterson #2. The log and test results in the lower Hosston suggest that significant resource potential remains to be exploited on the Midway Dome. As a result, we currently plan to bring the drilling rig back in early November to drill a west offset to the Patterson #2. This well is planned to test the entire lower Hosston section, some of which was not tested in the Patterson #2, as well as the deeper Cotton Valley sands that have not yet been penetrated on Midway Dome. We are continuing to build our acreage position on a number of other prospects and leads as well as adding to our seismic coverage in the Mississippi Salt Basin. I have confidence that our planned drilling program in the Salt Basin in 2007 will continuously utilize at least one rig."
Elias continued, "I am excited about the momentum and potential we see in all areas of our program. As a result, we are making plans to expand our 2006 capital program from current levels as well as laying the ground work for a robust 2007 program."
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. Edge common stock is listed on the NASDAQ Global Select Market under the symbol "EPEX."
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