Edge Petroleum Corporation
Ticker:EPEX 1111 Bagby, Suite 2100
Exchange:NASDAQ-National Market Houston, TX 77002
Industry:Natural Resources (SIC Code 1311) (713) 654-8960

Offering Information
Type of Shares:Common Shares Filing Date:12/4/96
U.S. Shares:2,400,000 Offer Date:2/25/97
Non-U.S. Shares:0 Filing Range:$15.00 - $17.00
Primary Shares:2,400,000 Offer Price:$16.50
Secondary Shares:0 Gross Spread:$1.15
Offering Amount: $38,400,000 Selling:$0.67
Expenses:$1,800,000 Reallowance:$0.10
Shares Out After:6,682,000

Primary Underwriting Group
ManagerTierPhone
Raymond James & Associates, Inc.Lead Manager (813) 573-8108
Jefferies & Company IncorporatedCo-manager (212) 903-2342
Principal Financial Securities, Inc.Co-manager (214) 880-8083

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Baker & Botts
Bank's Law Firm: Vinson & Elkins

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 9/30/96 9/30/95 9/30/96
Revenue:$2.04$5.11$1.38Assets:$18.43
Net Income:$1.08$0.40$1.22Curr Assets:
EPS:$0.23$0.09$0.26Liabilities:$17.02
Prior EPS:$0.21Curr Liabilities:
Cash Flow/Oper:Equity:$1.41
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company explores for oil and natural gas by emphasizing the integrated application of highly advanced data visualization techniques and computerized 3-D seismic data analysis to identify potential hydrocarbon accumulations. The company believes its approach to processing and analyzing geophysical data differentiates it from other independent exploration and production companies and is more effective than conventional 3-D seismic data interpretation methods. The company utilizes a fully integrated, client-server environment including nine workstation nodes with a high performance Silicon Graphics server. This hardware configuration enables the company to utilize advanced interpretation software, including both Earth Cube and Voxel Geo technology.

Competition
The company encounters competition from other oil and natural gas companies in all areas of its operations, including the acquisition of exploratory prospects and proven properties. The company's competitors include major integrated oil and natural gas companies and numerous independent oil and natural gas companies, individuals and drilling and income programs. Many of its competitors are large, well-established companies with substantially larger operating staffs and greater capital resources than the company's and which, in many instances, have been engaged in the oil and natural gas business for a much longer time than the company.

Business Plan
The company's business strategy is to expand its reserves, production and cash flow through a disciplined, integrated technology-based program of exploring for oil and natural gas which emphasizes the following key components: 1) focused exploration; 2) technological expertise; 3) sophisticated and experienced technical team; 4) prospects with attractive risk/reward balance; 5) control over critical exploration functions.

Use of Proceeds
The proceeds from the proposed offering will be used to repay indebtedness, to provide working capital and for general corporate purposes including funding the company's 3-D seismic data acquisition, exploration and development activities.

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