Houston-based independent Edge Petroleum said Monday it has completed Vista Nueva, a new exploration and development venture, with an undisclosed private company in its core South Texas operating area, giving it an exclusive option to secure leases on almost 47,000 acres and access to 81 square miles of 3-D seismic data. No financial details were disclosed.

The Vista Nueva project is contiguous to assets that Edge recently purchased from Contango Oil & Gas Co., which are located in the Texas counties of Jim Hogg and Brooks (see Daily GPI, Dec. 30, 2004). The project also is near a 2003 asset purchase from another private company.

CEO John W. Elias said Edge would have opportunities in its new assets “to add to the already significant upside we believe exists on the assets we acquired from Contango.” He said Edge expects to begin drilling its first well by the end of February, and the company is “actively” reviewing the new 3-D data. “This area has the potential to be a rewarding, multi-year exploration and development program for us.”

Three wells that were drilling over year-end 2004 have been completed already, said Elias. Two new wells have reached total depth with completion operations under way. A third new well is currently drilling and is expected to reach total depth before the end of the quarter. Elias said that Edge has additional producing zones in three existing Lobo wells, which are now contributing to its production stream.

“We expect to drill three to five additional wells in the first quarter and continue to forecast a very active program for the balance of this year,” Elias added.

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