Edge Announces Joint Venture With Texaco On the 42,000 Acre M.E. O'Connor Heirs Ranch in South Texas.
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 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 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 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 techniques to improve its ability to effectively explore for natural gas and oil along the onshore Gulf Coast 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 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, 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
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|Date:||Jul 29, 1998|
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