Edge Ends 2007 with Production, Reserves 'Lower than Expected'
Edge Petroleum Corporation reported that its estimated production volume for 2007 was 24.1 billion cubic feet equivalent ("Bcfe"), an increase of 40% over 2006. Fifty-eight wells (29.9 net) were spud during 2007. Fifty of the 58 wells were logged as of year-end with 46 apparent successes and four dry holes for an apparent success rate of 92%. Three wells were drilling over year-end and were subsequently logged as apparent successes, five wells in Arkansas had operations temporarily suspended at year-end, and another two wells have been spud and logged as apparent successes since year-end. Edge's estimated average daily production rate for the month of January 2008 is 60 to 62 million cubic feet equivalent ("MMcfe").
At December 31, 2007, the Company's proved reserves of oil, natural gas liquids and natural gas totaled 163.4 Bcfe, comprised of 116.5 Bcf of natural gas, 4,773,000 barrels of natural gas liquids and 3,041,000 barrels of crude oil. This compares to 102.1 Bcfe of proved reserves as of December 31, 2006, for an increase of 60%. Natural gas and natural gas liquids represented 89% of year-end 2007 total proved reserves and 77% of total proved reserves were classified as proved developed.
John W. Elias, Edge's Chairman, President and CEO, commented on the 2007 operating results noting, "We ended 2007 with production and proved reserves lower than we expected, due primarily to the drilling of fewer wells than we had planned, a dry hole at a proved undeveloped location on the acquired properties in southeast Texas and a disappointing start to our Arkansas shale program where fracture stimulation during the completion of our initial wells caused communication with an underlying water bearing zone. Many of the planned 2007 wells have been deferred and some of the reserves we had originally expected to be classified as proved have been moved to a non-proved category, pushing many of these growth opportunities out into the future. We have recently reviewed our entire portfolio of assets and have identified significant drilling opportunities with a non-proven resource potential range of approximately 200 to 400 Bcfe on a net unrisked basis, excluding any shale gas potential. We still believe there may be significant resource potential associated with our Arkansas acreage. A substantial portion of our non-proven resource potential is ready to drill, but has been deferred due to the ongoing strategic assessment process discussed in more detail below."
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