Edge Petroleum Corporation has reported financial results for the quarter and year-to-date periods ended September 30, 2008 as follows:
• Production for the third quarter of 2008 was 4.0 Bcfe, averaging 43.5 MMcfe per day. Production for the nine months ended September 30, 2008 totaled 13.7 Bcfe, averaging 49.9 MMcfe per day.
• Third quarter 2008 results were impacted by our mark-to-market derivative contracts. A non-cash net unrealized pre-tax derivative gain of $75.7 million is included in total revenue for the three-months ended September 30, 2008. Year-to-date, our non-cash net unrealized pre-tax derivative gain totaled $8.4 million.
• Realized cash settlements paid to our counterparties on our derivative contracts totaled $12.2 million in the third quarter of 2008 and $30.9 million year-to-date.
• We recorded an impairment of our oil and natural gas properties of $129.5 million ($84.2 million, net of tax) in the third quarter of 2008. Approximately 87% of the decrease in the present value of our future net revenues attributed to proved reserves was the result of declines in commodity prices from June 30, 2008 to September 30, 2008, which contributed to the impairment at September 30, 2008.
• Our quarterly net loss to common stockholders was $42.1 million, or $1.47 basic and diluted loss per share. For the nine months ended September 30, 2008, we reported a net loss to common stockholders of $90.2 million, or $3.15 basic and diluted loss per share. These losses include the significant impact of our impairment of oil and natural gas properties that was recorded at September 30, 2008.
Third quarter production for 2008 was 4.0 Bcfe as compared to 6.2 Bcfe for the same period in 2007. Normal production declines and decreased reinvestment in replacing production as compared to historical levels contributed to the overall decline in production volumes. We also experienced a loss of production in the current year from properties sold in the first quarter of 2008 that contributed production of approximately 2.0 MMcfe per day, as well as the impact from the effects of Hurricane Ike, which resulted in a modest average third quarter curtailment of approximately 0.4 MMcfe per day. Edge has been operating under a reduced reinvestment program while we have been engaged in our strategic alternative evaluation process. During the first nine months of 2008, we drilled 20 wells as compared to 38 wells in the comparable prior-year period.