1021010--3/13/2008--EDGE_PETROLEUM

related topics

{gas, price, oil}

{acquisition, growth, future}

{debt, indebtedness, cash}

{cost, operation, labor}

{cost, regulation, environmental}

{operation, natural, condition}

{tax, income, asset}

{personnel, key, retain}

{stock, price, share}

{provision, law, control}

{loss, insurance, financial}

Our ongoing strategic assessment process, including any transaction that might result therefrom, may reduce productivity because of its impact on our management, current and prospective employees and customers, suppliers and business partners. Oil and gas drilling is a speculative activity and involves numerous risks and substantial and uncertain costs which could adversely affect us. Oil and natural gas prices are highly volatile in general and low prices negatively affect our financial results. We have hedged and may continue to hedge our production, which may result in our making cash payments, prevent us from receiving the benefit of increases in prices for oil and natural gas or expose us to risk of financial loss at times when production is less than expected. We depend on successful exploration, development and acquisitions to maintain reserves and revenue in the future. We are subject to substantial operating risks that may adversely affect the results of our operations. We cannot control the activities on properties we do not operate and are unable to ensure their proper operation and profitability. The loss of key personnel could adversely affect us. Our operations have significant capital requirements which, if not met, will hinder operations. High demand for field services and equipment and the ability of suppliers to meet that demand may limit our ability to drill and produce our oil and natural gas properties. Government regulation and liability for environmental matters may adversely affect our business and results of operations. We may have difficulty managing any future growth and the related demands on our resources and may have difficulty in achieving future growth. We face strong competition from larger oil and natural gas companies. The oil and natural gas reserve data included in or incorporated by reference in this document are estimates based on assumptions that may be inaccurate and existing economic and operating conditions that may differ from future economic and operating conditions. Our credit facility has substantial operating restrictions and financial covenants and we may have difficulty obtaining additional credit, which could adversely affect operations. We may not have enough insurance to cover all of the risks we face. Our acquisition program may be unsuccessful. Our ability to utilize net operating loss carryforwards may be limited. Approximately 23% of our proved reserves were undeveloped as of December 31, 2007, and those reserves may not ultimately be developed. We do not intend to pay dividends on our common stock and our ability to pay dividends on our common stock is restricted. Our reliance on third parties for gathering and distributing could curtail future exploration and production activities. Provisions of Delaware law and our charter and bylaws may delay or prevent transactions that would benefit stockholders.

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1021010--3/13/2008--EDGE_PETROLEUM_CORP