EXHIBIT 10.17

                           EDGE PETROLEUM CORPORATION
                               1997 INCENTIVE PLAN

                                     SPECIAL
                      NON-QUALIFIED STOCK OPTION AGREEMENT


                  THIS  AGREEMENT  ("Agreement")  is  made  as of the 3rd day of
March,  1997 (the "Grant Date"),  by and between EDGE PETROLEUM  CORPORATION,  a
Delaware corporation (the "Company"), and JAMES D. CALAWAY (the "Grantee").

                  The Company has adopted the Edge  Petroleum  Corporation  1997
Incentive  Plan (the "Plan"),  a copy of which is appended to this  Agreement as
Exhibit A and by this reference made a part hereof,  for the benefit of eligible
employees,  directors  and  independent  contractors  of  the  Company  and  its
Subsidiaries. Capitalized terms used and not otherwise defined herein shall have
the meaning ascribed thereto in the Plan.

                  Pursuant to the Plan, the Committee,  which has generally been
assigned responsibility for administering the Plan, has determined that it would
be in the  interest  of the Company  and its  stockholders  to grant the options
provided  herein in order to provide Grantee with  additional  remuneration  for
services  rendered,  to encourage Grantee to remain in the employ of the Company
or its Subsidiaries and to increase Grantee's personal interest in the continued
success and progress of the Company.

                  The Company and Grantee therefore agree as follows:

         1. Grant of Option.  Subject to the terms and  conditions  herein,  the
Company grants to the Grantee during the period  commencing on March 3, 1997 and
expiring at 5 p.m.  Houston,  Texas time ("Close of  Business") on March 3, 2007
(the "Option Term"), subject to earlier termination pursuant to Section 6 below,
an  option to  purchase  from the  Company,  at the price per share set forth on
Schedule 1 hereto (the "Option  Price"),  the number of shares of Company Common
Stock ("Common Stock") set forth on said Schedule 1 (the "Option  Shares").  The
Option Price and Option Shares are subject to  adjustment  pursuant to Section 9
below.  This  option is as a  "Nonqualified  Stock  Option"  and is  hereinafter
referred to as the "Option".

         2. Conditions of Exercise. The Option is exercisable only in accordance
with the conditions stated in this Section.

                  (a) Except as otherwise  provided in this  Subsection (a), the
         Option may only be  exercised  to the extent  the  Option  Shares  have
         become   available  for  purchase  in  accordance  with  the  following
         schedule:
                                                   Percentage of Option
                               Date            Shares Available for Purchase
                           ------------        -----------------------------
                           March 3, 1998                  20%
                           March 3, 1999                  40%
                           March 3, 2000                  60%
                           March 3, 2001                  80%
                           March 3, 2002                 100%

         Notwithstanding the foregoing, all Option Shares shall become available
         for  purchase  if  Grantee's   employment  with  the  Company  and  its
         Subsidiaries  (i) shall  terminate by reason of (x)  termination by the
         Company without Cause (as defined in Section 6 below),  (y) termination
         by  Grantee  for Good  Reason  (as  defined  in Section 6 below) or (z)
         Disability  (as  defined in  Section 6 below) or (ii) if  Grantee  dies
         while employed by the Company or a Subsidiary.

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                  (b) To the extent the Option becomes exercisable,  such Option
         may be exercised in whole or in part (at any time or from time to time,
         except as otherwise  provided  herein)  until  expiration of the Option
         Term or earlier termination thereof.

                  (c) All of the  foregoing  provisions  of this  Section  2 are
         subject to (i) the  provisions  of Section 6 below,  addressing  events
         that  may  result  in  early  termination  of the  Option  and (ii) the
         provisions of any written employment  agreement between the Grantee and
         the  Company  or a  Subsidiary  that  applies,  by its  terms,  to this
         Agreement and that is in effect at the time its provisions would become
         operative with respect to this Agreement.

         3. Manner of Exercise.  The Option shall be considered exercised (as to
the number of Option  Shares  specified in the notice  referred to in Subsection
(a) below) on the latest of (i) the date of exercise  designated  in the written
notice  referred to in Subsection  (a) below,  (ii) if the date so designated is
not a business  day,  the first  business day  following  such date or (iii) the
earliest business day by which the Company has received all of the following:

                  (a) Written notice, in such form as the Committee may require,
         designating, among other things, the date of exercise and the number of
         Option Shares to be purchased;

                  b) If the  Option is to be  exercised,  payment  of the Option
         Price for each Option Share to be purchased in cash, Common Stock or in
         such other form (or  combination of forms) of payment  contemplated  by
         Section 11 of the Plan as the Committee or the provisions of Section 11
         of the Plan may permit;  provided,  however,  that any shares of Common
         Stock  delivered  in payment  of the Option  Price that are or were the
         subject of an Employee  Award must be shares that the Grantee has owned
         for a period of at least six months prior to the date of exercise; and

                  (c)      Any other documentation that the Committee may
         reasonably require.

         4. Mandatory  Withholding for Taxes.  Grantee  acknowledges  and agrees
that the  Company  shall  deduct  from the cash  and/or  shares of Common  Stock
otherwise  payable or deliverable  upon exercise of the Option an amount of cash
and/or  number of shares of Common  Stock  (valued at their Fair Market Value on
the date of  exercise)  that is equal to the  amount of all  federal,  state and
local  taxes  required to be withheld  by the  Company  upon such  exercise,  as
determined by the Committee.

         5. Delivery by the Company. As soon as practicable after receipt of all
items  referred to in Section 3, and subject to the  withholding  referred to in
Section 4, the  Company  shall  deliver to the  Grantee  certificates  issued in
Grantee's  name for the number of Option  Shares  purchased  by  exercise of the
Option.  If  delivery is by mail,  delivery  of shares of Common  Stock shall be
deemed  effected for all  purposes  when a stock  transfer  agent of the Company
shall have deposited the  certificates  in the United States mail,  addressed to
the Grantee, and any cash payment shall be deemed effected when a Company check,
payable to  Grantee  and in an amount  equal to the amount of the cash  payment,
shall have been deposited in the United States mail, addressed to the Grantee.

         6.  Termination  of  Employment.  Unless  otherwise  determined  by the
Committee  in its sole  discretion,  the Option  shall  terminate,  prior to the
expiration of the Option Term, at the time specified below:


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                 (a) If Grantee terminates  employment with the Company and its
         Subsidiaries  voluntarily  without Good Reason (as defined below), then
         the  Option  shall  terminate  at the  Close of  Business  on the first
         business day following the  expiration of the 90-day period which began
         on the date of termination of Grantee's employment; or

                  (b)  If  Grantee's   employment   with  the  Company  and  its
         Subsidiaries is terminated by the Company or a Subsidiary for Cause (as
         defined below),  then the Option shall terminate  immediately upon such
         termination of Grantee's employment.

                  In any event in which the  Option  remains  exercisable  for a
period of time following the date of termination  of Grantee's  employment,  the
Option may be  exercised  during  such  period of time only to the extent it was
exercisable  as provided in Section 2 on such date of  termination  of Grantee's
employment. A change of employment is not a termination of employment within the
meaning of this Section 6 provided that, after giving effect to such change, the
Grantee  continues  to  be  an  employee  of  the  Company  or  any  Subsidiary.
Notwithstanding  any period of time  referenced  in this  Section 6 or any other
provision of this Section  that may be  construed  to the  contrary,  the Option
shall in any event terminate upon the expiration of the Option Term.

                  "Cause"  for  purposes  of the  Agreement  shall mean cause as
defined in any written employment  agreement between the Grantee and the Company
or a Subsidiary in effect at the time of the Grantee's termination of employment
or, in the absence of any such employment agreement,  any of the following:  (a)
the Grantee is convicted of a felony involving moral turpitude,  (b) the Grantee
commits a willful  serious act intending to enrich himself at the expense of the
Company or any affiliated entity, or (c) the Grantee, in carrying out his duties
and  responsibilities  under  this  Agreement,  (i) is guilty of  willful  gross
neglect, or (ii) voluntarily engages in conduct that results in material harm to
the  Company or any  affiliated  entity,  unless  such  conduct  was  reasonably
believed  by the  Grantee  in good  faith  to be in the  best  interests  of the
Company.

                  "Disability"   for  purposes  of  the  Agreement   shall  mean
disability as defined in any written  employment  agreement  between the Grantee
and  the  Company  or a  Subsidiary  in  effect  at the  time  of the  Grantee's
termination of employment or, in the absence of any such  employment  agreement,
as determined  by the  Committee in good faith and/or  pursuant to any long-term
disability plan sponsored by the Company or applicable Subsidiary.

                  "Good  Reason" for  purposes of the  Agreement  shall mean (a)
good reason as defined in any written  employment  agreement between the Grantee
and  the  Company  or a  Subsidiary  in  effect  at the  time  of the  Grantee's
termination of  employment,  (b) if such an agreement is then in effect and does
not define  "good  reason" but  contains a provision  permitting  the Grantee to
voluntarily  terminate  employment,  upon the occurrence of certain  events,  on
terms  substantially  equal to those  applicable to an  involuntary  termination
without  cause,  "Good  Reason"  shall  mean any of those  events  or (c) in the
absence of any such employment agreement definition or provision,  "Good Reason"
shall be deemed to have occurred upon the happening of any of the following:

                  (i)      any reduction in Grantee's annual rate of salary;

                  (ii) either (x) a failure of the Company to continue in effect
         any employee benefit plan in which Grantee was participating or (y) the
         taking  of any  action  by the  Company  that  would  adversely  affect
         Grantee's  participation  in, or materially  reduce Grantee's  benefits
         under,  any such  employee  benefit  plan,  unless such failure or such
         taking of any  action  adversely  affects  the  senior  members  of the
         corporate management of the Company generally;

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<PAGE>

                  (iii) the assignment to Grantee of duties and responsibilities
         that are materially  more oppressive or onerous than those attendant to
         Grantee's position immediately after the date hereof;

                  (iv) the  relocation  of the office  location  as  assigned to
         Grantee by the Company to a location more than 20 miles from  Grantee's
         current location without Grantee's consent; or

                  (v) the failure of the Company to obtain, prior to the time of
         any  reorganization,  merger,  consolidation,  disposition  of  all  or
         substantially  all of the assets of the Company or similar  transaction
         effective  after  the date  hereof,  in which  the  Company  is not the
         surviving  person,  the  unconditional  assumption  in  writing  or  by
         operation of law of the  Company's  obligations  to Grantee  under this
         Agreement  by  each  direct  successor  to  the  Company  in  any  such
         transaction.

                  All of the foregoing  provisions of this Section 6 are subject
to the provisions of any written  employment  agreement  between the Grantee and
the  Company  or a  Subsidiary  that is in effect  at the time of the  Grantee's
termination of employment and that applies, by its terms, to this Agreement.

         7.  Nontransferability of Option. During Grantee's lifetime, the Option
is not  transferable  (voluntarily  or  involuntarily)  other than pursuant to a
domestic  relations  order  and,  except as  otherwise  required  pursuant  to a
domestic  relations order, is exercisable only by the Grantee or Grantee's court
appointed  legal  representative.  The Grantee may  designate a  beneficiary  or
beneficiaries  to whom the Option shall pass upon Grantee's death and may change
such  designation  from  time  to  time  by  filing  a  written  designation  of
beneficiary  or  beneficiaries  with the Committee on the form annexed hereto as
Exhibit B or such other form as may be  prescribed  by the  Committee,  provided
that no such  designation  shall be effective unless so filed prior to the death
of Grantee. If no such designation is made or if the designated beneficiary does
not survive the  Grantee's  death,  the Option shall pass by will or the laws of
descent and  distribution.  Following  Grantee's death, the Option, if otherwise
exercisable,  may  be  exercised  by the  person  to  whom  such  option  passes
accordingly  to the  foregoing  and such person  shall be deemed the Grantee for
purposes of any applicable provisions of this Agreement.

         8. No  Stockholder  Rights.  The  Grantee  shall not be deemed  for any
purpose  to be, or to have any of the rights of, a  stockholder  of the  Company
with  respect to any shares of Common Stock as to which this  Agreement  relates
until such shares shall have been issued to Grantee by the Company. Furthermore,
the existence of this  Agreement  shall not affect in any way the right or power
of the Company or its  stockholders to accomplish any corporate act,  including,
without limitation, the acts referred to in Section 15 of the Plan.

         9.  Adjustments.  As  provided  in  Section  15 of  the  Plan,  certain
adjustments  may be  made  to the  Option  upon  the  occurrence  of  events  or
circumstances described in Section 15 of the Plan.

         10.  Restrictions  Imposed by Law.  Without  limiting the generality of
Section 16 of the Plan,  the Grantee  agrees that  Grantee will not exercise the
Option and that the  Company  will not be  obligated  to  deliver  any shares of
Common  Stock,  if counsel to the  Company  determines  that such  exercise,  or
delivery  would  violate any  applicable  law or any rule or  regulation  of any
governmental authority or any rule or regulation of, or agreement of the Company
with,  any  securities  exchange or  association  upon which the Common Stock is
listed  or  quoted.  The  Company  shall in no event  be  obligated  to take any
affirmative action in order to cause the exercise of the Option or the resulting
delivery of shares of Common Stock to comply with any such law, rule, regulation
or agreement.

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<PAGE>

         11.  Notice.  Unless the Company  notifies  the Grantee in writing of a
different  procedure,  any notice or other  communication  to the  Company  with
respect  to this  Agreement  shall be in  writing  and  shall  be (a)  delivered
personally to the following address:

                                    Edge Petroleum Corporation
                                    Texaco Heritage Plaza
                                    1111 Bagby, Suite 2100
                                    Houston, Texas  77002

or (b) sent by first-class mail, postage prepaid and addressed as follows:

                                    Edge Petroleum Corporation
                                    c/o Corporate Secretary
                                    Texaco Heritage Plaza
                                    1111 Bagby, Suite 2100
                                    Houston, Texas  77002

Any notice or other  communication to the Grantee with respect to this Agreement
shall be in writing and shall be delivered personally, or shall be sent by first
class mail,  postage prepaid,  to Grantee's  address as listed in the records of
the  Company  on the  Grant  Date,  unless  the  Company  has  received  written
notification from the Grantee of a change of address.

         12. Amendment.  Notwithstanding  any other provisions  hereof,  this
Agreement may be supplemented or amended  from time to time as  approved  by the
Committee  as  contemplated  by  Section  6 of the  Plan.  Without limiting the
generality of the foregoing, without the consent of the Grantee,

                  (a) this Agreement may be amended or supplemented  (i) to cure
         any  ambiguity or to correct or supplement  any provision  herein which
         may be defective or inconsistent  with any other provision  herein,  or
         (ii) to add to the  covenants  and  agreements  of the  Company for the
         benefit of  Grantee  or  surrender  any right or power  reserved  to or
         conferred upon the Company in this Agreement,  subject, however, to any
         required approval of the Company's  stockholders and, provided, in each
         case, that such changes or corrections  shall not adversely  affect the
         rights of Grantee with respect to the Award  evidenced  hereby  without
         the  Grantee's  consent,  or (iii) to make such  other  changes  as the
         Company, upon advice of counsel,  determines are necessary or advisable
         because  of the  adoption  or  promulgation  of, or change in or of the
         interpretation   of,  any  law  or  governmental  rule  or  regulation,
         including any applicable federal or state securities laws; and
                  (b) subject to Section 6 of the Plan and any required approval
         of the Company's  stockholders,  the Award  evidenced by this Agreement
         may be canceled by the Committee  and a new Award made in  substitution
         therefor,  provided that the Award so substituted  shall satisfy all of
         the  requirements of the Plan as of the date such new Award is made and
         no such  action  shall  adversely  affect the Option to the extent then
         exercisable without the Grantee's consent.

         13. Grantee  Employment.  Nothing  contained in this Agreement,  and no
action of the Company or the Committee with respect  hereto,  shall confer or be
construed  to confer on the  Grantee  any right to continue in the employ of the
Company or any of its Subsidiaries or interfere in any way with the right of the
Company or any employing Subsidiary to terminate the Grantee's employment at any
time,  with  or  without  cause;  subject,  however,  to the  provisions  of any
employment agreement between the Grantee and the Company or any Subsidiary.

         14.  Governing Law. This Agreement  shall be governed by, and construed
in accordance with, the internal laws of the State of Delaware.

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         15. Construction.  References in this Agreement to "this Agreement" and
the words "herein," "hereof," "hereunder" and similar terms include all Exhibits
and Schedules  appended  hereto,  including the Plan.  This Agreement is entered
into, and the Award evidenced hereby is granted,  pursuant to the Plan and shall
be governed by and construed in accordance with the Plan and the  administrative
interpretations  adopted  by the  Committee  thereunder.  All  decisions  of the
Committee  upon  questions  regarding  the  Plan  or  this  Agreement  shall  be
conclusive.  Unless  otherwise  expressly  stated  herein,  in the  event of any
inconsistency between the terms of the Plan and this Agreement, the terms of the
Plan shall  control.  The headings of the Sections of this  Agreement  have been
included for  convenience  of reference  only,  are not to be  considered a part
hereof and shall in no way  modify or  restrict  any of the terms or  provisions
hereof.

         16.  Duplicate  Originals.  The  Company  and the  Grantee may sign any
number of copies of this Agreement.  Each signed copy shall be an original,  but
all of them together represent the same agreement.

         17. Rules by Committee.  The rights of the Grantee and  obligations  of
the Company  hereunder shall be subject to such reasonable rules and regulations
as the Committee may adopt from time to time hereafter.

         18.  Entire  Agreement.  Subject to the  provisions  of any  applicable
written  employment  agreement  between  the  Grantee  and  the  Company  or any
Subsidiary, Grantee and the Company hereby declare and represent that no promise
or agreement not herein expressed has been made and that this Agreement contains
the entire  agreement  between the parties hereto with respect to the Option and
replaces and makes null and void any prior agreements,  oral or written, between
Grantee and the Company regarding the Option.

         19. Grantee  Acceptance.  Grantee shall signify acceptance of the terms
and  conditions  of this  Agreement by signing in the space  provided at the end
hereof and returning a signed copy to the Company.

ATTEST:                              EDGE PETROLEUM CORPORATION


By: /S/Robert Thomas
--------------------------
Secretary                                         Name: /S/ John E. Calaway
                                                        -------------------
                                                 Title: Chief Executive Officer

                                              ACCEPTED:

                                                      /S/ James D. Calaway
                                                      ---------------------
                                                          James D. Calaway

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                    Schedule 1 to Non-Qualified Stock Option
                       Agreement dated as of March 3, 1997



                 Edge Petroleum Corporation 1997 Incentive Plan



Grantee:          James D. Calaway


Grant Date:       March 3, 1997


Option Price:     $16.50 per share


Option Shares:    116,940 shares of Common Stock, $.01 par value per share.


<PAGE>


                Exhibit B to Non-Qualified Stock Option Agreement
                            dated as of March 3, 1997



                 Edge Petroleum Corporation 1997 Incentive Plan

                           Designation of Beneficiary


         I,  James D. Calaway (the "Grantee"), hereby declare

that upon my death ____________________________________ (the "Beneficiary") of
                                Name
______________________________________________________________________________,
  Street Address            City                 State            Zip Code

who is my _________________________________________________, shall be entitled
                           Relationship to Grantee

to the Option  and all  other  rights  accorded  the  Grantee  by the
above-referenced agreement (the "Agreement").

         It is understood that this  Designation of Beneficiary is made pursuant
to the Agreement and is subject to the conditions  stated herein,  including the
Beneficiary's  survival of the  Grantee's  death.  If any such  condition is not
satisfied, such rights shall devolve according to the Grantee's will or the laws
of descent and distribution.

         It is further  understood  that all prior  designations  of beneficiary
under the Agreement are hereby revoked and that this  Designation of Beneficiary
may only be  revoked  in  writing,  signed by the  Grantee,  and filed  with the
Company prior to the Grantee's death.






 Date                                      /S/ James D. Calaway
                                          -----------------------------
                                              James D. Calaway, Grantee