<PAGE>

                                UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.  20549
                                       
                                  FORM 10-Q
                                       
            [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE 
                       SECURITIES EXCHANGE ACT OF 1934
                                       
                For the quarterly period ended MARCH 31, 1998
                                       
                                      OR
                                       
            [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE 
                       SECURITIES EXCHANGE ACT OF 1934
                                       
        For the transition period from ______________ to ______________
                                       
                        Commission file number 0-22149
                                       
                          EDGE PETROLEUM CORPORATION
            (Exact name of registrant as specified in its charter)
                                       
                                       
                  Delaware                                   76-0511037
     (State or other jurisdiction of                      (I.R.S. Employer
     incorporation or organization)                      Identification No.)
                                       
                                       
                            Texaco Heritage Plaza
                            1111 Bagby, Suite 2100
                             Houston, Texas 77002
                   (Address of principal executive offices)
                                       
                                (713) 654-8960
             (Registrant's telephone number, including area code)

     Indicate by checkmark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.

                                Yes  X     No
                                    ---       ---
                                          
                                          
     Indicate the number of shares outstanding of each of the issuer's 
classes of common equity, as of the latest practicable date.

           Class                           Outstanding at May 12, 1998
       ------------                        ---------------------------
       Common Stock                                7,760,869

<PAGE>

                            PART I. FINANCIAL INFORMATION


Item 1. Financial Statements
EDGE PETROLEUM CORPORATION

CONSOLIDATED BALANCE SHEETS
-------------------------------------------------------------------------------

<TABLE>
                                                            MARCH 31,       DECEMBER 31,
                                                              1998             1997
                                                          -----------      -------------
ASSETS                                                    (UNAUDITED)
<S>                                                       <C>              <C>
CURRENT ASSETS:
   Cash and cash equivalents                              $ 1,365,049      $ 3,777,950
   Accounts receivable, trade                               2,742,558        2,394,497
   Accounts receivable, joint interest owners, net          3,242,953        6,547,619
   Receivable from related parties                            321,923          385,192
   Other current assets                                       303,621          352,571
                                                          -----------      -----------
       Total current assets                                 7,976,104       13,457,829

PROPERTY AND EQUIPMENT, Net - full cost method of 
 accounting for oil and natural gas properties             41,760,870       36,662,521
                                                                     
INVESTMENT IN FRONTERA                                      3,628,264        3,628,264
                                                                     
OTHER ASSETS                                                   24,695           17,232
                                                          -----------      -----------
TOTAL ASSETS                                               53,389,933      $53,765,846
                                                          -----------      -----------
                                                          -----------      -----------

LIABILITIES AND STOCKHOLDERS' EQUITY                                 
                                                                     
CURRENT LIABILITIES:                                                 
   Accounts payable, trade                                $ 3,782,382       $4,794,037
   Accounts payable to related party                                            40,000
   Accrued liabilities                                        965,057        1,020,645
                                                          -----------      -----------
       Total current liabilities                            4,747,439        5,854,682
                                                          -----------      -----------
DEFERRED INCOME TAXES                                         217,812
                                                          -----------      -----------
       Total liabilities                                    4,965,251        5,854,682
                                                          -----------      -----------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
   Preferred stock, $.01 par value; 5,000,000 shares 
    authorized; none outstanding 
   Common stock, $.01 par value; 25,000,000 shares 
    authorized; 7,760,869 shares issued and outstanding        77,609           77,609
   Additional paid-in capital                              47,629,822       47,629,822
   Retained earnings                                        4,183,475        3,825,009
   Unearned compensation - restricted stock                (3,466,224)      (3,621,276)
                                                          -----------      -----------
       Total stockholders' equity                          48,424,682       47,911,164
                                                          -----------      -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                $53,389,933      $53,765,846
                                                          -----------      -----------
                                                          -----------      -----------
</TABLE>

See accompanying notes to consolidated financial statements.

                                      2
<PAGE>

EDGE PETROLEUM CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------------------------------------------------

<TABLE>
                                                        THREE MONTHS ENDED
                                                             MARCH 31,
                                                     -------------------------
                                                        1998           1997
                                                     ----------     ----------
                                                            (UNAUDITED)
<S>                                                  <C>            <C>
OIL AND NATURAL GAS REVENUES                         $3,785,666     $3,441,001

OPERATING EXPENSES:
   Oil and natural gas operating expenses               671,184        628,413
   Depletion, depreciation and amortization           1,046,977        615,764
   General and administrative expenses                1,406,276        920,580
   Unearned compensation expense                        155,052         48,238
                                                     ----------     ----------
       Total operating expenses                       3,279,489      2,212,995
                                                     ----------     ----------

OPERATING INCOME                                        506,177      1,228,006

OTHER INCOME AND (EXPENSE):

   Interest expense                                                   (180,307)
   Interest income                                       46,045        108,226
                                                     ----------     ----------
INCOME BEFORE INCOME TAXES                              552,222      1,155,925

INCOME TAX EXPENSE                                      193,756        224,574
                                                     ----------     ----------
NET INCOME                                           $  358,466     $  931,351
                                                     ----------     ----------
                                                     ----------     ----------
BASIC EARNINGS PER SHARE                             $     0.05          $0.16
                                                     ----------     ----------
                                                     ----------     ----------
DILUTED EARNINGS PER SHARE                           $     0.05          $0.16
                                                     ----------     ----------
                                                     ----------     ----------
BASIC WEIGHTED AVERAGE NUMBER OF
 COMMON SHARES OUTSTANDING                            7,760,869      5,872,144
                                                     ----------     ----------
                                                     ----------     ----------
DILUTED WEIGHTED AVERAGE NUMBER OF
 COMMON SHARES OUTSTANDING                            7,794,098      5,889,589
                                                     ----------     ----------
                                                     ----------     ----------
</TABLE>
See accompanying notes to consolidated finacial statements.

                                      3
<PAGE>

EDGE PETROLEUM CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
-------------------------------------------------------------------------------

<TABLE>
                                                                                                UNEARNED               
                                              COMMON STOCK        ADDITIONAL                  COMPENSATION -     TOTAL
                                         ---------------------      PAID-IN       RETAINED      RESTRICTED    STOCKHOLDERS'
                                          SHARES       AMOUNT       CAPITAL       EARNINGS        STOCK          EQUITY
<S>                                      <C>           <C>        <C>            <C>          <C>             <C>
BALANCE, JANUARY 1, 1998                 7,760,869     $77,609    $47,629,822    $3,825,009   $(3,621,276)    $47,911,164
                                                                                                            
Amortization of unearned compensation-                                                                      
 restricted stock (unaudited)                                                                     155,052         155,052
                                                                                                            
   Net income (unaudited)                                                           358,466                       358,466
                                         ---------     -------    -----------    ----------   -----------     -----------
BALANCE, MARCH 31, 1998                                                                                     
 (unaudited)                             7,760,869     $77,609    $47,629,822    $4,183,475   $(3,466,224)    $48,424,682
                                         ---------     -------    -----------    ----------   -----------     -----------
                                         ---------     -------    -----------    ----------   -----------     -----------
</TABLE>

See accompanying notes to consolidated financial statements.




                                      4
<PAGE>

EDGE PETROLEUM CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------------------------------------------------

<TABLE>
                                                                    THREE MONTHS ENDED
                                                                        MARCH 31,
                                                               ---------------------------
                                                                    1998           1997
                                                                        (UNAUDITED)
<S>                                                            <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                                  $    358,466    $   931,351
   Adjustments to reconcile net income to net cash 
    provided by (used in) operating activities:
      Depletion, depreciation and amortization                    1,046,977        615,764
      Deferred income taxes                                         193,756        224,574
      Unearned compensation expense                                 155,052         48,238
   Changes in assets and liabilities:
      Accounts receivable, trade                                   (348,061)      (133,976)
      Accounts receivable, joint interest owners, net             3,304,666     (1,802,249)
      Receivable from related parties                                63,269        (35,573)
      Other current assets                                           48,950       (325,071)
      Other assets                                                   (7,463)         9,382
      Accounts payable, trade                                    (1,011,655)        29,065
      Accounts payable to related party                             (40,000)
      Accrued interest payable                                                     (74,354)
      Accrued liabilities                                           (31,532)      (603,376)
                                                                -----------    -----------
           Net cash provided by (used in) operating 
            activities                                            3,732,425     (1,116,225)
                                                                -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Oil and natural gas property and equipment purchases          (7,928,450)    (2,109,498)
   Proceeds from the sale of oil and natural gas properties       1,783,124
                                                                -----------    -----------
           Net cash used in investing activities                 (6,145,326)    (2,109,498)
                                                                -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from notes payable                                                      867,350
  Payment on notes payable                                                     (11,017,348)
  Payment on long-term notes payable                                              (379,410)
  Payment on related party subordinated loans                                   (1,300,000)
  Net proceeds from issuance of common stock                                    41,151,873
                                                                -----------    -----------
           Net cash provided by financing activities                            29,322,465
                                                                -----------    -----------
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS             (2,412,901)    26,096,742

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                    3,777,950      1,543,228
                                                                -----------    -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                       $  1,365,049    $27,639,970
                                                                -----------    -----------
                                                                -----------    -----------
SUPPLEMENTAL CASH FLOW DISCLOSURES - Cash paid for interest                    $   254,661

NON-CASH TRANSACTIONS:
  Combination transactions                                                     $ 3,599,635
  Deferred offering costs at December 31, 1996 capitalized 
   to equity                                                                   $ 1,006,379
</TABLE>

See accompanying notes to consolidated financial statements. 


                                      5
<PAGE>


  EDGE PETROLEUM CORPORATION
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
  1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


          The financial statements included herein have been prepared by Edge
     Petroleum Corporation, a Delaware corporation (the "Company"), without
     audit pursuant to the rules and regulations of the Securities and Exchange
     Commission, and reflect all adjustments which are, in the opinion of
     management, necessary to present a fair statement of the results for the
     interim periods on a basis consistent with the annual audited consolidated
     financial statements.  All such adjustments are of a normal recurring
     nature.  The results of operations for the interim period are not
     necessarily indicative of the results to be expected for an entire year. 
     Certain information, accounting policies and footnote disclosures normally
     included in financial statements prepared in accordance with generally
     accepted accounting principles have been omitted pursuant to such rules and
     regulations, although the Company believes that the disclosures are
     adequate to make the information presented not misleading.  Certain prior
     year amounts have been reclassified to conform to the current year
     presentation.  Such reclassifications do not affect net income.  These
     financial statements should be read in conjunction with the Company's
     audited consolidated financial statements included in the Company's Annual
     Report on Form 10-K for the year ended December 31, 1997. 

     Comprehensive Income - The Financial Accounting Standards Board issued
     Statement of Financial Accounting Standards ("SFAS") No. 130, "Reporting
     Comprehensive Income".  This statement establishes standards for reporting
     and display of comprehensive income and its components in the Company's
     financial statements.  Comprehensive income includes all changes in the
     Company's equity except investments by and distributions to owners and
     includes, among other things, foreign currency translation adjustments. 
     This standard is effective for financial statements for periods beginning
     after December 15, 1997.  The adoption of SFAS No. 130 had no material 
     effect on the Company's financial condition or results of operations as 
     the Company currently has no items of other comprehensive income.

  2. NOTES PAYABLE AND LONG TERM DEBT

          During July 1995, the Company entered into a revolving credit facility
     (the "Revolving Credit Facility") with a bank to finance temporary working
     capital requirements.  The Revolving Credit Facility provided up to
     $20,000,000 in borrowings limited by a borrowing base (as defined by the
     Revolving Credit Facility).  The Revolving Credit Facility provided for
     interest at the lender's prime rate plus 0.75%.  The borrowing base was
     subject to review by the bank on a quarterly basis and could be adjusted
     subject to the provisions of the Revolving Credit Facility.  On March 3,
     1997 the Company repaid the outstanding balance of $11,017,348 plus accrued
     interest with proceeds from the initial public offering.  Effective April
     1, 1998, the Company amended and restated its Revolving Credit Facility to
     provide a revolving line of credit of up to $100 million bearing interest
     at a floating rate equal to LIBOR plus 1.5% - 2% depending on the level of
     borrowing base utilization.  The Company's initial borrowing base 
     authorized by the banks is approximately $15 million.  Beginning 
     September 1, 1998, the borrowing base will be redetermined semi-annually 
     by unanimous consent of the banks and from time to time at the Company's 
     or the bank's request.  Beginning May 1, 1998 and on the first day of each
     month thereafter, the borrowing base is required to be reduced by $525,000.

     The Revolving Credit Facility provides for certain restrictions, 
     including but not limited to, limitations on additional borrowings and 
     issues of capital stock, sales of its oil and natural gas properties or 
     other collateral, engaging in merger or consolidation transactions and 
     prohibitions of dividends and certain distributions of cash or properties 
     and certain liens.  The Revolving Credit Facility also contains the 
     following financial covenants: (i) tangible net worth (total assets 
     exclusive of certain intangibles minus liabilities) must be at least $43 
     million plus 50% of positive net income and 100% of equity raised for all 
     quarterly periods subsequent to December 31, 1997; (ii) the ratio at the 
     end of any quarter of cash flow (net income plus proceeds of certain 
     project sales, depletion, depreciation, amortization and other non-cash 
     expenses less non-cash net income for such quarter) must be at least 1.25 
     to 1.00; and (iii) the ratio at the end of any quarter of EBIT (net 
     income plus interest expense and taxes, excluding non-cash, extraordinary 
     expenses and income) to interest expense for the proceeding 12-month 
     period must be at least 4.5 to 1.00.  The Revolving Credit Facility is 
     secured by substantially all the assets of the Company.

  3. EARNINGS PER SHARE

           During 1997, the Company implemented SFAS No. 128 - "Earnings
     per Share," which establishes the requirements for presenting earnings
     per share ("EPS").  SFAS No. 128 requires the presentation of "basic"
     and "diluted" EPS on the face of the income statement.  Basic earnings
     per common share amounts are 

                                    6
<PAGE>

     calculated using the average number of common shares outstanding during
     each period.  Diluted earnings per share assumes the exercise of all 
     stock options having exercise prices less than the average market price
     of the common stock using the treasury stock method.  The earnings per 
     share data for prior years has been restated following the standards in
     SFAS No. 128.

          The following is presented as a reconciliation of the numerators
     and denominators of basic and diluted earnings per share computations,
     in accordance with SFAS No. 128.

<TABLE>
                                   THREE MONTHS ENDED MARCH 31, 1998      THREE MONTHS ENDED MARCH 31, 1997
                                --------------------------------------  -------------------------------------
                                  INCOME        SHARES       PER-SHARE     INCOME       SHARES      PER-SHARE
                                (NUMERATOR) (DENOMINATOR)     AMOUNT    (NUMERATOR)  (DENOMINATOR)    AMOUNT
                                ----------- -------------     ------    -----------  -------------    ------
<S>                               <C>          <C>             <C>        <C>          <C>             <C>
BASIC EPS:
Income available to common
  stockholders                    $358,466     7,760,869       $0.05      $931,351     5,872,144       $0.16

EFFECT OF DILUTIVE SECURITIES:
Common stock options                              33,229                                  17,445            
                                  --------     ---------       -----      --------     ---------       -----
DILUTED EPS:
Income available to common
  stockholders                    $358,466     7,794,098       $0.05      $931,351     5,889,589       $0.16
                                  --------     ---------       -----      --------     ---------       -----
                                  --------     ---------       -----      --------     ---------       -----
</TABLE>

          The Company was organized through an initial public offering and
     a series of combination transactions (the "Combination") which were
     accounted for as a reorganization of entities under common control. 
     Accordingly, for the three months ended March 31, 1997, the number of
     shares outstanding has been computed assuming that 4,701,361 shares of
     common stock originally issued in connection with the Combination,
     effective February 25, 1997, were outstanding from the beginning of
     the period.

ITEM 2.         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                     CONDITION AND RESULTS OF OPERATIONS

     The following is management's discussion and analysis of certain
significant factors that have affected certain aspects of the Company's
financial position and operating results during the periods included in the
accompanying unaudited condensed consolidated financial statements.  This
discussion should be read in conjunction with the accompanying unaudited
condensed consolidated financial statements included elsewhere in this Form 10-Q
and with the Company's audited consolidated financial statements included in the
Company's annual report on Form 10-K for the year ended December 31, 1997. 
Unless otherwise indicated by the context, references herein to the "Company"
mean Edge Petroleum Corporation, a Delaware corporation that is the registrant,
and its corporate and partnership subsidiaries and predecessors.

OVERVIEW

     Edge Petroleum Corporation is an independent energy company engaged in the
exploration, development and production of oil and natural gas.  Edge conducts
its operations primarily along the onshore Gulf Coast with its primary emphasis
in South Texas and Louisiana where it currently controls interests in excess of
236,000 gross acres under lease and option.  The Company explores for oil and
natural gas by emphasizing an 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 also believes
that it maintains one of the largest databases of onshore South Texas Gulf Coast
3-D seismic data of any independent oil and natural gas company, and is
continuously acquiring substantial additional data within this core region.

                                     7
<PAGE>

     The Company acquires 3-D seismic data by organizing and designing regional
data acquisition surveys for its proprietary use, as well as through selective
participation in regional non-proprietary 3-D surveys.  The Company negotiates
seismic options for a majority of the areas encompassed by its proprietary
surveys, thereby allowing it to secure identified prospect leasehold interests
on a non-competitive, pre-arranged basis.  In the Company's non-proprietary 3-D
survey areas, the Company's technical capabilities allow it to rapidly and
comprehensively evaluate large volumes of regional 3-D seismic data,
facilitating its ability to identify attractive prospects within a surveyed
region and to secure the corresponding leasehold interests ahead of other
industry participants.
     
     The Company's extensive technical expertise has enabled it to internally 
generate substantially all of its 3-D prospects drilled to date and to 
assemble a large portfolio of 3-D based drilling prospects.  The Company 
pursues drilling opportunities that include a blend of shallower, normally 
pressured reservoirs that generally involve moderate costs and risks as well 
as deeper, over-pressured reservoirs that generally involve greater costs and 
risks, but have higher economic potential.  During the past year, the Company 
has expanded its relative focus to increase its exposure to exploration 
opportunities with deeper targets.  The Company mitigates its exposure to 
exploration costs and risk by conducting its operations with industry 
partners, including major oil companies and large independents, that 
generally pay a disproportionately greater share of seismic acquisition and, 
in many instances, leasing and drilling costs than the Company.

     The Company uses the full-cost method of accounting for its oil and natural
gas properties.  Under this method, all acquisition, exploration and development
costs that are directly attributable to the Company's acquisition, exploration
and development activities are capitalized in a "full-cost pool" as incurred. 
The Company records depletion of its full-cost pool using the unit of production
method.  To the extent that such capitalized costs in the full cost pool (net of
depletion, depreciation and amortization and related deferred taxes) exceed the
present value (using a 10% discount rate) of estimated future net after-tax cash
flows from proved oil and natural gas reserves, such excess costs are charged to
operations.  Once incurred, a write-down of oil and natural gas properties is
not reversible at a later date.

     Due to the instability of oil and natural gas prices, the Company has
entered into, from time to time, price risk management transactions (e.g., swaps
and collars) for a portion of its natural gas production to achieve a more
predictable cash flow, as well as to reduce exposure from price fluctuations. 
While the use of these arrangements limits the benefit to the Company of
increases in the price of natural gas it also limits the downside risk of
adverse price movements.  The Company's hedging arrangements apply to only a
portion of its production and provide only partial price protection against
declines in natural gas prices and limits potential gains from future increases
in prices.  The Company accounts for these transactions as hedging activities
and, accordingly, gains and losses are included in oil and natural gas revenues
during the period the hedged transactions occur.  During the three months ended
March 31, 1998, the Company had in place two natural gas commodity collars with
a financial institution one of which expired on January 31, 1998 with the other
expiring on April 30, 1998.  These collars cover 5,000 MMbtus per day, or
approximately 29% of the Company's daily production, with floating floor and
ceiling prices ranging between $2.25 and $3.15 per MMbtu, (delivered price
basis, Houston Ship Channel), with settlement for each calendar month occurring
five business days following the publishing of the Inside F.E.R.C. Gas Marketing
Report.  Total natural gas production marketed under these arrangements was
450,000 MMbtu for the three months ended March 31, 1998.  Included within
natural gas revenues for the three months ended March 31, 1998 was $36,700
representing a net gain from current collar activity.  Additionally, during the
three months ended March 31, 1998, the Company has entered into a collar
arrangement with a financial institution that begins and expires on April 1,
1998 and June 30, 1998, respectively.  This collar arrangement covers 10,000
MMbtus per day with a floating floor and ceiling price ranging between $2.15 and
$2.37 per MMbtu.  There was no material hedging activity during the three months
ended March 31, 1997.

     The Company's revenue, profitability and future rate of growth and ability
to borrow funds or obtain additional capital, and the carrying value of its
properties, are substantially dependent upon prevailing prices for oil and
natural gas.  These prices are dependent upon numerous factors beyond the
Company's control, such as economic, political and regulatory developments and
competition from other sources of energy.  The energy markets have historically
been very volatile, and there can be no assurance that oil and natural gas
prices will not be subject to wide fluctuations in the future.  A substantial or
extended decline in oil and natural gas prices could have a material 

                                      8
<PAGE>

adverse effect on the Company's financial condition, results of operation and 
access to capital, as well as the quantities of oil and natural gas reserves 
that the Company may economically produce

RESULTS OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 1998 COMPARED TO THE THREE MONTHS ENDED MARCH 31,
1997

REVENUE AND PRODUCTION

     Oil and natural gas revenues for the three months ended March 31, 1998
increased 10% from $3.4 million to $3.8 million as compared to the three months
ended March 31, 1997.  Production volumes for oil and condensate for the three
months ended March 31, 1998 increased 45% from 29 MBbls to 42 MBbls as compared
to the three months ended March 31, 1997.  The increase in oil and condensate
production during the three months ended March 31, 1998 increased revenues by
$295,929 (based on prior quarter average prices), offset by a 40% decrease in
the average oil sales price which decreased revenues by $376,464 (based on
current quarter production).  Production volumes for natural gas for the three
months ended March 31, 1998 increased 29% from 1,022 MMcfs to 1,323 MMcfs as
compared to the three months ended March 31, 1997.  The increase in natural gas
production during the three months ended March 31, 1998 increased revenues by
$856,424, offset by a 11% decrease in the average natural gas sales price which
decreased revenues by $431,224.  The increase in oil and natural gas production
was primarily due to 79 gross (34.04 net) new exploratory and development wells
being successfully drilled and completed since March 31, 1997 partially offset
by normal production declines from existing wells.  During the three months
ended March 31, 1998 the Company marketed its natural gas produced from a
certain gas field under the terms of various fixed volume natural gas contracts.
Prices received for production marketed under these agreements averaged $2.26
and $2.38 for the three months ended March 31, 1998 and 1997 respectively. 
Total production, (net to the Company's interest) marketed under these
agreements for the three-month periods ended March 31, 1998 and March 31, 1997
was approximately 306,000 Mcf and 334,000 Mcf, respectively, representing
approximately 19% and 28%, respectively, of total production, on a Mcfe basis. 
As described above, included within natural gas revenues for the three months
ended March 31, 1998 was $36,700 representing gains from current collar
activity.  The collar settlements increased the effective natural gas sales
price by approximately $0.03 per Mcf, or 1%, for the three-month period ended
March 31, 1998.  There was no material hedging activity during the three months
ended March 31, 1997.

     The following table sets forth-certain operational data of the Company for
the periods presented: 

<TABLE>
                                                                             1998 PERIOD COMPARED                         
                                             THREE MONTHS ENDED                  TO 1997 PERIOD   
                                                 MARCH 31,                ----------------------------
                                        -------------------------          INCREASE         % INCREASE 
                                           1998           1997            (DECREASE)        (DECREASE)
                                        ----------     ----------         ----------        ----------
<S>                                     <C>            <C>                <C>                 <C>
Production volumes:
   Oil and condensate (Bbls)                42,139         29,039           13,100             45 %
   Natural gas (Mcf)                     1,323,022      1,022,164          300,858             29 %

   Natural gas equivalents (Mcfe)        1,575,856      1,196,398          379,458             32 %

Average sales prices:
   Oil and condensate ($ per Bbl)       $    13.66     $    22.59         $  (8.93)           (40)%
   Natural gas ($ per Mcf)                    2.43           2.73            (0.30)           (11)%

Operating revenues:
   Oil and condensate                   $  575,456     $  655,991         $(80,535)           (12)%
   Natural gas                           3,210,210      2,785,010          425,200             15 %
                                        ----------     ----------         --------            
Total                                   $3,785,666     $3,441,001         $344,665             10 %
                                        ----------     ----------         --------            
                                        ----------     ----------         --------            
</TABLE>

COSTS AND OPERATING EXPENSES

     Oil and natural gas operating expenses for the three months ended March 31,
1998 increased 7% from $628,413 to $671,184 as compared to the three-month
period ended March 31, 1997.  Oil and natural gas operating expenses were $0.43
per Mcfe and $0.53 Mcfe for the three-month periods ended March 31, 1998 and
1997, 

                                      9
<PAGE>
 
respectively.  The reduction in oil and natural gas operating expenses on
a Mcfe basis is due to the continued emphasis on drilling larger production
volume wells which are more efficient to operate.

     Depletion, depreciation and amortization expense ("DD&A") for the three
months ended March 31, 1998 increased 70% from $615,764 to $1,046,977 as
compared to the three months ended March 31, 1997.  Included within DD&A for the
three-month periods ended March 31, 1998 and 1997 was $883,825 and $478,142,
respectively, representing depletion expense of oil and natural gas property,
which increased by 85%.  Increased oil and natural gas production increased
depletion expense by $151,652 and a 40% increase in the overall depletion rate
further increased depletion expense by $254,031.  The increase in the depletion
rate was primarily due to a 6.3 Bcfe year-end 1997 downward revision to prior
year oil and gas reserve estimates.  The rate was further increased as a result
of increased cost associated with reserve additions since March 31, 1997. 
Depletion on a unit of production basis for the three-month periods ended March
31, 1998 and 1997 was $0.56 per Mcfe and $0.40 per Mcfe, respectively.  The
remaining increase in DD&A is due primarily to depreciation of new computer
hardware, software and office improvements purchased since March 31, 1997.

     General and administrative expenses ("G&A") for the three months ended
March 31, 1998 increased 53% from $920,580 to $1,406,276, as compared to the
three-month period ended March 31, 1997.  The increase in G&A was primarily
attributable to the hiring of additional employees to support the Company's
increased level of exploration activities and 3-D project generation and costs
associated with being a public company.  Included within general and
administrative expenses for the three months ended March 31, 1998 and 1997, is
$199,855 and $235,000, respectively, of overhead reimbursements and management
fees received from various management, operating and seismic agreements. 
General and administrative expenses on a unit of production basis for the three
month periods ended March 31, 1998 and 1997 were $0.89 per Mcfe and $0.77 per
Mcfe, respectively. 

     Unearned compensation expense for the three months ended March 31, 1998
increased from $48,238 to $155,052 as compared to the three-month period ended
March 31, 1997, due to the amortization of restricted stock which was granted
during March 1997 contemporaneously with the Company's initial public offering.

     Interest expense for the three months ended March 31, 1997 was $180,307. 
No Interest expense was recorded during 1998 as a result of the Company repaying
all of its long-term debt during March 1997 with proceeds from the initial
public offering.

      Interest income for the three months ended March 31, 1998 decreased from
$108,226 to $46,045, compared to the three-month period ended March 31, 1997. 
The decrease in interest income is due to the overall reduction in invested
funds.

     Income tax expense for the three months ended March 31, 1998 decreased from
$224,574 to $193,756 as compared to the three-month period ended March 31, 1997.
The decrease in income tax expense during the three-month period ended March 31,
1998 is due to reduced earnings of the Company.  Additionally, the lower
effective tax rate during the three-month period ended March 31, 1997 was due to
the utilization of available tax assets.  The Company's unrecognized net
deferred tax assets have been substantially utilized as of December 31, 1997 and
the Company began providing federal income taxes at the statutory rate, which
approximates the effective rate, during the first quarter of 1998.

     For the three months ended March 31, 1998, the Company had operating income
of $506,177, as compared to operating income of $1,228,006 for the same period
in 1997.

LIQUIDITY AND CAPITAL RESOURCES

     In March 1997, the Company completed its initial public offering (the
"Offering") of 2,760,000 shares of common stock at a public offering price of
$16.50 per share.  The Offering provided the Company with proceeds of
approximately $40 million, net of expenses.  The Company used approximately
$12.7 million to repay its long-term outstanding indebtedness incurred under its
revolving credit facility (the "Revolving Credit Facility"), subordinated loans
and equipment loans.  The remaining proceeds from the Offering, together with
cash flows from operations, 

                                     10
<PAGE>

were used to fund planned capital expenditures, commitments, other working 
capital requirements and for general corporate purposes.

     The Company had cash and cash equivalents at March 31, 1998 of $1.4 
million, consisting primarily of short-term money market investments, as 
compared to $3.8 million at December 31, 1997.  Working capital was $3.2 
million at March 31, 1998, as compared to $7.6 million at December 31, 1997.

     Operating cash flow before changes in working capital was approximately 
$1.8 million for both three-month periods ended March 31, 1998 and 1997. 
Operating cash flow, a measure of performance for exploration and production 
companies, represents cash flows from operating activities prior to charges 
in assets and liabilities.  Operating cash flow should not be considered in 
isolation or as a substitute for net income, operating income, cash flows 
from operating activities or any other measure of financial performance 
presented in accordance with generally accepted accounting principles or as a 
measure of profitability or liquidity.

     During the three months ended March 31, 1998, the Company continued to 
reinvest a substantial portion of its cash flows to increase its 3-D project 
portfolio, improve its 3-D seismic interpretation technology and fund its 
drilling program.  Capital expenditures during the three months ended March 
31, 1998 were $7.9 million as compared to $2.1 million during the same period 
in 1997.  The Company's drilling efforts resulted in the drilling of 22 gross 
(10.29 net) wells in the first quarter of 1998 as compared to 15 gross (4.94 
net) wells during the same period in 1997.  The Company expects capital 
expenditures in 1998 to be at least $30 million.  A substantial portion of 
capital expenditures in 1998 will be invested in the Company's portfolio of 
3-D prospects to fund drilling activities in an effort to expand its reserve 
base. In addition, the Company expects to continue to expand and improve its 
technological and 3-D seismic interpretation capabilities.  The Company may 
seek overseas direct investment opportunities with Frontera Resources 
Corporation and, particularly in Latin America, with others.

       Due to the Company's active exploration and development and technology
enhancement programs, the Company has experienced and expects to continue to
experience substantial working capital requirements.  The Company intends to
fund its 1998 capital expenditures, commitments and working capital requirements
through cash flows from operations, borrowings and to the extent necessary other
financing activities.  The Company believes it will have sufficient capital
resources and liquidity to fund its capital expenditures and meet such financial
obligations as they come due.  In the event such capital resources are not
available to the Company, its drilling and other activities may be curtailed.

REVOLVING CREDIT FACILITY

     During July 1995, the Company entered into a Revolving Credit Facility 
with a bank to finance temporary working capital requirements.  The Revolving 
Credit Facility provided up to $20,000,000 in borrowings limited by a 
borrowing base (as defined by the Revolving Credit Facility).  The Revolving 
Credit Facility provided for interest at the lender's prime rate plus 0.75%.  
The borrowing base was subject to review by the bank on a quarterly basis and 
could be adjusted subject to the provisions of the Revolving Credit Facility. 
On March 3, 1997, the Company repaid the outstanding balance of $11,017,348 
plus accrued interest with proceeds from the initial public offering.  
Effective April 1, 1998, the Company amended and restated its Revolving 
Credit Facility to provide a revolving line of credit of up to $100 million 
bearing interest at a floating rate equal to LIBOR plus 1.5% - 2% depending 
on the level of borrowing base utilization.  The Company's initial borrowing 
base authorized by the banks is approximately $15 million.  Beginning 
September 1, 1998, the borrowing base will be redetermined semi-annually by 
unanimous consent of the banks and from time to time at the Company's or the 
bank's request.  Beginning May 1, 1998 and on the first day of each month 
thereafter, the borrowing base is required to be reduced by $525,000.
 
     The Revolving Credit Facility provides for certain restrictions, 
including but not limited to, limitations on additional borrowings and issues 
of capital stock, sales of its oil and natural gas properties or other 
collateral, engaging in merger or consolidation transactions and prohibitions 
of dividends and certain distributions of cash or properties and certain 
liens.  The Revolving Credit Facility also contains the following financial 
covenants: (i) tangible net worth (total assets exclusive of certain 
intangibles minus liabilities) must be at least $43 million plus 50% of 
positive net income and 100% of equity raised for all quarterly periods 
subsequent to December 31, 1997; (ii) the ratio at the end of any quarter of 
cash flow (net income plus proceeds of certain project sales, depletion, 

                                      11
<PAGE>

depreciation, amortization and other non-cash expenses less non-cash net 
income for such quarter) must be at least 1.25 to 1.00; and (iii) the ratio 
at the end of any quarter of EBIT (net income plus interest expense and 
taxes, excluding non-cash, extraordinary expenses and income) to interest 
expense for the proceeding 12-month period must be at least 4.5 to 1.00.  The 
Revolving Credit Facility is secured by substantially all the assets of the 
Company.

FORWARD LOOKING STATEMENTS

     The statements contained in all parts of this document, including, but not
limited to, those relating to the Company's drilling plans, its 3-D project
portfolio, capital expenditures, use of Offering proceeds, general and
administrative expenses on a per unit of production basis, the sufficiency of
capital resources and liquidity to support working capital and capital
expenditure requirements, reinvestment of cash flows and any other statements
regarding future operations, financial results, business plans, sources of
liquidity and cash needs and other statements that are not historical facts are
forward looking statements.  When used in this document, the words "anticipate,"
"estimate," "expect," "may," "project," "believe" and similar expressions are
intended to be among the statements that identify forward looking statements. 
Such statements involve risks and uncertainties, including, but not limited to,
those relating to the Company's dependence on its exploratory drilling
activities, the volatility of oil and natural gas prices, the need to replace
reserves depleted by production, operating risks of oil and natural gas
operations, the Company's dependence on its key personnel, the Company's
reliance on technological development and possible obsolescence of the
technology currently used by the Company, significant capital requirements of
the Company's exploration and development and technology development programs,
the potential impact of government regulations, litigation and environmental
matters, the Company's ability to manage its growth and achieve its business
strategy, competition, the uncertainty of reserve information and future net
revenue estimates, property acquisition risks and other factors detailed in the
Company's Form 10-K and other filings with the Securities and Exchange
Commission.  Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual outcomes may vary
materially from those indicated.

                         PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS........................................    None
                                                    
ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS................
       
       The Company's Registration Statements on Form S-1 (Registration Nos. 
333-17267 and 333-22363), as amended, with respect to the initial public 
offering (the "Offering") of shares of Company's Common Stock was declared 
effective by the Securities and Exchange Commission on February 25, 1997.  In 
the Offering, the Company sold 2,400,000 shares of Common Stock on March 3, 
1997 and 360,000 shares of Common Stock on March 17, 1997 pursuant to the 
exercise of the underwriters' over-allotment option.

       The net proceeds to the Company from the Offering were $40 million.  As
of March 31, 1998, the Company has used such net proceeds as follows: (i) to
repay $12.7 million of indebtedness, (ii) to make a $3.6 million investment in
Frontera Resources Corporation and (iii) capital expenditures of $22.3 million
in the Company's drilling plans and its 3-D project portfolios and (iv) the
remaining $1.4 million was used to acquire temporary investments.  None of such
payments were direct or indirect payments to directors or officers of the
Company or their associates, to persons owning ten percent or more of any class
of equity securities of the Company or to affiliates to the Company.

ITEM 3   DEFAULTS UPON SENIOR SECURITIES..........................    None
                                                              
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - ...    None
                                                              
ITEM 5 - OTHER INFORMATION........................................    None

                                  12
<PAGE>

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

         (A)  EXHIBITS.  The following exhibits are filed as part of this
report:
                                          
                                 INDEX TO EXHIBITS

Exhibit No.

-----------

     *2.1 Amended and Restated Combination Agreement by and among (i) Edge
          Group II Limited Partnership, (ii) Gulfedge Limited
          Partnership, (iii) Edge Group Partnership, (iv) Edge
          Petroleum Corporation of Texas, (v) Edge Mergco, Inc. and
          (vi) the Company, dated as of January 13, 1997 (Incorporated
          by reference to Exhibit 2.1 to the Registration Statement on
          Form S-4 (Registration No. 333-17269) filed by the Company).

     *3.1 Restated Certificate of Incorporation of the Company, as amended
          (Incorporated by reference to Exhibit 3.1 to Registration
          Statement on Form S-4 (Registration No. 333 -17269) filed by
          the Company).

     *3.2 Bylaws of the Company (Incorporated by Reference to Exhibit 3.2 to the
          Registration Statement on Form S-4 (Registration No. 333-17269) filed
          by the Company).

     4.1  Amended and Restated Credit Agreement, dated as of April 1, 1998,
          by and between Edge Petroleum Corporation and Edge Petroleum
          Exploration Company (collectively the "Borrower") and
          Compass Bank, a Texas state chartered banking institution,
          as Agent for itself and The First National Bank of Chicago
          and other lenders party thereto. 

     4.2  Security Agreement, dated as of April 1, 1998, by and between
          Edge Petroleum Corporation and Edge Petroleum Exploration
          Company (collectively the "Debtor") and Compass Bank, a
          Texas state chartered banking institution, as Agent for
          itself and The First National Bank of Chicago and other
          lenders party thereto the Credit Agreement. 

     4.3  Security Agreement (Stock Pledge), dated as of April 1, 1998, by
          and between Edge Petroleum Corporation (the "Pledgor") and
          Compass Bank, a Texas state chartered banking institution,
          as Agent for itself and The First National Bank of Chicago
          and other lenders party thereto the Credit Agreement. 

     11.1 Computation of Earnings Per Share

     27.1 Financial Data Schedule

     *Incorporated by reference as indicated

         (B)  Reports on Form 8-K......................................  None 

                                        13
<PAGE>

                                   SIGNATURES
        
      Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
                                          
                            EDGE PETROLEUM CORPORATION,
                                          
                               A DELAWARE CORPORATION
                                    (REGISTRANT)


Date           5/13/98                                /s/ John E. Calaway
-----------------------                           ---------------------------
                                                         John E. Calaway
                                                  Chief Executive Officer and 
                                                      Chairman of the Board


Date           5/13/98                               /s/ James D. Calaway
-----------------------                           ---------------------------
                                                        James D. Calaway
                                                     President and Director


Date           5/13/98                                /s/ Michael G. Long
-----------------------                           ---------------------------
                                                         Michael G. Long
                                                    Chief Financial Officer


Date           5/13/98                               /s/ Brian C. Baumler
-----------------------                           ---------------------------
                                                        Brian C. Baumler
                                                    Controller and Treasurer

                                        14