Edge Announces Joint Venture With Texaco On the 42,000 Acre M.E. O'Connor Heirs Ranch in South Texas.HOUSTON--(BUSINESS WIRE)--July 29, 1998--Edge Petroleum Corporation (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :EPEX) today announced that Edge and Texaco Exploration and Production Inc. (TEPI TEPI Training Equipment Planning Information ) have entered into an agreement to jointly develop the oil and gas potential on the 42,200 acre M.E. O'Connor Heirs Ranch in Goliad County, Texas Goliad County is a county located in the U.S. state of Texas. As of 2000, the population is 6,928. Its county seat is Goliad6. Goliad is named for the Mexican Municipality of Goliad, which in turn is named for Father Miguel Hidalgo; "Goliad" is an anagram of Hidalgo, .
The development of the O'Connor Ranch, which has never been shot with 3-D seismic, will begin in 1998 with the acquisition of approximately 80 square miles A square mil is a unit of area, equal to the area of a square with sides of length one mil. A mil is one thousandth of an international inch. This unit of area is usually used in specifying the area of the cross section of a wire or cable. of 3-D seismic data. TEPI will be the operator of the project. Edge and TEPI will each have a 50 percent working interest in the rights above the base of the Yegua formation. Working interests below the base of the Yegua will be shared 22.5 percent Edge and 77.5 percent Texaco.
The O'Connor Ranch is one of the largest contiguous ranches in South Texas, which offers considerable flexibility for operations much like a large offshore lease block. It adjoins Edge's core operating areas in Goliad, Victoria and Bee Counties, Texas, areas where Edge has had considerable success in the shallow Frio trend as well as deep success, with Texaco and others, in the Wilcox trend.
James Calaway, Edge president, said, "Our transaction with TEPI covering the O'Connor Ranch is a continuation of the ongoing strategic alliance between Texaco and Edge in South Texas. Due to O'Connor family estate planning Estate Planning
The overall planning of a person's wealth, including the preparation of a will and the planning of taxes after the individual's death.
Contrary to popular belief, estate planning involves much more than preparing a will, and it is not only for the reasons, this ranch has had minimal evaluation in the past; however, significant production surrounds the ranch, with numerous 2-D and 3-D seismic surveys in the area that all end at the ranch boundaries. This opportunity was highly prized by the industry, and we believe that the synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik)
1. acting together.
2. enhancing the effect of another force or agent.
1. fit of Edge and TEPI will best meet the O'Connor family's goals of efficient and responsible development of the ranch, as well as meet each partners' focus and risk/return appetite. We are very excited about the opportunity this transaction brings to Edge."
Edge management will hold a conference call at 9:30 A.M. central daylight time on Monday, August 10, 1998 to discuss second quarter earnings and update operations. Intended parties can participate by dialing (800) 370-0869 and asking for the Edge Petroleum conference call. The call will be available for tape replay for five business days by calling (800) 657-1264 if you are unable to participate on August 10.
Edge Petroleum Corporation is a Houston-based independent energy company that emphasizes the application of advanced 3-D seismic data integration and visualization Using the computer to convert data into picture form. The most basic visualization is that of turning transaction data and summary information into charts and graphs. Visualization is used in computer-aided design (CAD) to render screen images into 3D models that can be viewed from all techniques to improve its ability to effectively explore for natural gas and oil along the onshore Gulf Coast of the United States The Gulf Coast region of the United States comprises the coasts of states which border the Gulf of Mexico. The states of Texas, Louisiana, Mississippi, Alabama, and Florida are known as the Gulf States. All Gulf States are located in the Southern region of the United States. .
Statements in this news release, including but not limited to those relating continued growth, expansion of deep activities, other future activities, drilling opportunities, future expected wells or production, prospect potential, financial results, and other statements that are not historical facts, are forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are based upon current expectations. Although Edge believes that its expectations are based upon reasonable assumptions, it can give no assurance that these expectations will prove correct. Important factors that could cause actual results to differ materially from those in the forward-looking statements include results of, and dependence on exploratory drilling activities, volatility of natural gas and oil prices, operating risks Operating risk
The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. , regulatory and environmental matters, unforeseen engineering and mechanical or technological difficulties in drilling wells, availability of drilling rigs, weather, land issues, risks of foreign operations and other risks described in the Company's filings with the Securities and Exchange Commission.
CONTACT: Edge Petroleum Corporation, Houston
Michael G. Long, 713/654-8960