Edge Petroleum Corp., Houston, (Nasdaq: EPEX) is running a 91% rate of success after completing 23 wells so far this year. Operating at a reduced capex level, the company’s plans are to drill four to seven more wells before the end of the year with at least two in the Fayetteville/Moorefield shale play in Arkansas.

In the Fayetteville/Moorefield, the proposed drilling locations are near recently completed wells with initial rates in excess of 2 million cubic feet per day. In addition, the company is seeking a permit from the Arkansas Oil and Gas Commission to re-inject produced water into an existing well.

Once granted, plans are to bring three shut-in wells with working interests from 80% to 100% back online, Edge reports. These wells, which tested at favorable initial gas rates, remain shut-in due to excessive water production from an underlying water-bearing formation.

In the third quarter, the company has logged five wells, which include the Chapman Ranch #19, spud in the first quarter and temporarily abandoned after experiencing an underground flow before reaching the planned total depth. One well is being prepared for spud in South Texas and another is being drilled in southeastern New Mexico.

The drilling program this quarter has been focused primarily in South Texas at the Edge-operated Flores/Bloomberg Field as well as in southeastern New Mexico.

Estimated production for the third quarter is 4 billion cubic feet equivalent or an average daily rate of 43.5 million cubic feet equivalent, including the effects of Hurricane Ike which resulted in an average daily curtailment of about 1.1 million cubic feet equivalent during September. Pipeline shut-ins and power outages were the primary cause of this reduced production with no significant damage to any Edge facilities.

Estimated production for the first three quarters of 2008 is 13.7 billion cubic feet equivalent or an average daily rate of approximately 50 million cubic feet equivalent. Full-year daily production is expected to average 47- to 49 million cubic feet equivalent. Edge sold properties in the first quarter with average daily production of 2 million cubic feet equivalent.

In Mississippi, Edge has completed the reprocessing work on the 72-square-mile 3-D seismic data set over the Midway Dome Field. Interpretation of this data is under way to refine prospective 2009 drilling sites in both the shallow Tuscaloosa and Paluxy intervals, as well as the deep-upper and lower Hosston intervals. Edge is the operator and has a 75% working interest in this project.

Edge has operations in Texas, Mississippi, New Mexico, Louisiana, Michigan, Alabama and Arkansas.--JAS