<PAGE>

--------------------------------------------------------------------------------


                                  SECURITY AGREEMENT
                                    (Stock Pledge)


                                          BY


                              EDGE PETROLEUM CORPORATION


                                     IN FAVOR OF


                                COMPASS BANK, AS AGENT




                                    April 1, 1998




--------------------------------------------------------------------------------


                    CREDIT FACILITY TO EDGE PETROLEUM CORPORATION
                        AND EDGE PETROLEUM EXPLORATION COMPANY


--------------------------------------------------------------------------------



--------------------------------------------------------------------------------

<PAGE>

                                  TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                            Page
<S>         <C>                                                             <C>
ARTICLE 1   DEFINITIONS AND INTERPRETATION

     1.1    Terms Defined Above. . . . . . . . . . . . . . . . . . . . . . .   1
     1.2    Terms Defined in Credit Agreement. . . . . . . . . . . . . . . .   1
     1.3    Additional Defined Terms . . . . . . . . . . . . . . . . . . . .   2
     1.4    Undefined Financial Accounting Terms . . . . . . . . . . . . . .   2
     1.5    Terms Defined in Texas Business and Commerce Code. . . . . . . .   2
     1.6    References.. . . . . . . . . . . . . . . . . . . . . . . . . . .   2
     1.7    Articles and Sections. . . . . . . . . . . . . . . . . . . . . .   2
     1.8    Number and Gender. . . . . . . . . . . . . . . . . . . . . . . .   2

ARTICLE 2   SECURITY INTEREST

     2.1    Grant of Security Interest in Collateral . . . . . . . . . . . .   3
     2.2    Delivery of Collateral . . . . . . . . . . . . . . . . . . . . .   3
     2.3    Power of Attorney. . . . . . . . . . . . . . . . . . . . . . . .   3

ARTICLE 3   REPRESENTATIONS AND WARRANTIES

     3.1    Status of Collateral . . . . . . . . . . . . . . . . . . . . . .   4
     3.2    No Material Misstatements. . . . . . . . . . . . . . . . . . . .   4
     3.3    Ownership and Liens. . . . . . . . . . . . . . . . . . . . . . .   5

ARTICLE 4   COVENANTS AND AGREEMENTS
     4.1    Payment of Assessments and Charges . . . . . . . . . . . . . . .   5
     4.2    Delivery of Collateral . . . . . . . . . . . . . . . . . . . . .   5
     4.3    Further Assurances . . . . . . . . . . . . . . . . . . . . . . .   5
     4.4    Prohibited Liens and Filings . . . . . . . . . . . . . . . . . .   5

ARTICLE 5   RIGHTS AND REMEDIES
     5.1    Remedies Upon Default. . . . . . . . . . . . . . . . . . . . . .   6
     5.2    Voting Rights, Dividends, Etc. Prior to Default. . . . . . . . .   6
     5.3    Voting Rights, Dividends, Etc. After Default . . . . . . . . . .   7
     5.4    Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . .   8
     5.5    Lender Duties. . . . . . . . . . . . . . . . . . . . . . . . . .   8
     5.6    The Lender's Actions . . . . . . . . . . . . . . . . . . . . . .   8

ARTICLE 6   MISCELLANEOUS
     6.1    Transfer of Obligations and Collateral . . . . . . . . . . . . .   8
     6.2    Cumulative Security. . . . . . . . . . . . . . . . . . . . . . .   9
     6.3    Continuing Agreement . . . . . . . . . . . . . . . . . . . . . .   9

                                          i
<PAGE>

     6.4    Cumulative Rights. . . . . . . . . . . . . . . . . . . . . . . .   9
     6.5    Exercise of Rights . . . . . . . . . . . . . . . . . . . . . . .   9
     6.6    Remedy and Waiver. . . . . . . . . . . . . . . . . . . . . . . .   9
     6.7    Non-Judicial Remedies. . . . . . . . . . . . . . . . . . . . . .   9
     6.8    Preservation of Liability. . . . . . . . . . . . . . . . . . . .  10
     6.9    Notices and Other Communications . . . . . . . . . . . . . . . .  10
     6.10   Parties in Interest. . . . . . . . . . . . . . . . . . . . . . .  10
     6.11   Amendment and Waiver . . . . . . . . . . . . . . . . . . . . . .  11
     6.12   Invalidity . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
     6.13   Governing Law. . . . . . . . . . . . . . . . . . . . . . . . . .  11
     6.14   Jurisdiction and Venue . . . . . . . . . . . . . . . . . . . . .  11
     6.15   Waiver of Rights to Jury Trial . . . . . . . . . . . . . . . . .  11
     6.16   Entire Agreement . . . . . . . . . . . . . . . . . . . . . . . .  11
     6.17   Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . .  12
</TABLE>

                                          ii

<PAGE>

                                  SECURITY AGREEMENT
                                    (Stock Pledge)


          THIS SECURITY AGREEMENT (Stock Pledge) (this "SECURITY AGREEMENT")
dated as of April 1, 1998, is entered into by and between EDGE PETROLEUM
CORPORATION (the "PLEDGOR"), and COMPASS BANK, a Texas state chartered banking
institution, (the "AGENT"), as Agent for itself and The First National Bank of
Chicago, and the other Lenders signatory to the Credit Agreement (the
"LENDERS").


                                W I T N E S S E T H :

          WHEREAS, pursuant to the terms and conditions of the Credit Agreement
dated April 1, 1998, executed in connection with a revolving loan extended to
Edge Petroleum Corporation and Edge Petroleum Exploration Company by Lenders,
(as such agreement may be amended, restated, or supplemented from time to time,
the "CREDIT AGREEMENT"), the Lender has agreed to extend credit to or for the
benefit of the Pledgor;

          WHEREAS, the Pledgor is the owner of the shares of issued and
outstanding common stock described in Schedule I hereof (the "SECURITIES"); and

          WHEREAS, pursuant to the terms of the Credit Agreement, and as an
inducement to the Lender to extend credit to or for the benefit of the Pledgor
pursuant to the Credit Agreement the Pledgor has agreed to execute this Security
Agreement in favor of the Lender;

          NOW, THEREFORE, in consideration of the premises and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:


                                      ARTICLE 1.

                            DEFINITIONS AND INTERPRETATION

                1.1 TERMS DEFINED ABOVE.  As used in this Security
Agreement, the terms "AGENT,", "LENDERS," "CREDIT AGREEMENT," "PLEDGOR,"
"SECURITY AGREEMENT," and "SECURITIES" will have the meanings indicated above.

                1.2 TERMS DEFINED IN CREDIT AGREEMENT.  Each capitalized
term used but not defined herein shall have the meaning assigned to such term in
the Credit Agreement.

                1.3 ADDITIONAL DEFINED TERMS.  As used in this Security
Agreement, the following terms will have the meanings indicated:


                                          1
<PAGE>

          (1)       "COLLATERAL" will mean the Securities and all certificates
                or agreements representing or granting rights in the
                Securities; all dividends, cash, instruments and other Property
                from time to time received, receivable or otherwise distributed
                in respect of or in exchange for any or all of the Securities,
                including, without limitation, all additional shares of stock
                of the entities listed on Schedule I from time to time acquired
                by the Pledgor by way of stock dividend or stock split; the
                certificates representing such additional shares; all
                dividends, cash, instruments or other Property from time to
                time received, receivable or otherwise distributed in respect
                of or in exchange for any or all of such additional shares; and
                all proceeds of any of the foregoing in this definition.

          (2)       "EVENT OF DEFAULT" shall mean any Event of Default, as
                defined in the Credit Agreement, or the failure of the Pledgor
                to comply with Regulations G, T, U or X of the Board of
                Governors of the Federal Reserve System, as amended.

                1.4 UNDEFINED FINANCIAL ACCOUNTING TERMS.  Undefined
financial accounting terms used in this Security Agreement shall have the
meanings assigned to such terms according to GAAP.

                1.5 TERMS DEFINED IN TEXAS BUSINESS AND COMMERCE CODE.  Any
term used herein that is defined in the Texas Business and Commerce Code shall
have the meaning assigned to such term therein, unless the context otherwise
requires or such term is otherwise defined herein.

                1.6 REFERENCES.  The words "hereby," "herein,"
"hereinabove," "hereinafter," "hereinbelow," "hereof," "hereunder," and words of
similar import when used in this Security Agreement shall refer to this Security
Agreement as a whole and not to any particular Article, Section, or provision of
this Security Agreement.  References in this Security Agreement to Article or
Section numbers are to such Articles or Sections of this Security Agreement
unless otherwise specified.

                1.7 ARTICLES AND SECTIONS.  This Security Agreement, for
convenience only, has been divided into Articles and Sections; and it is
understood that the rights and other legal relations of the parties hereto shall
be determined from this instrument as an entirety and without regard to the
aforesaid division into Articles and Sections and without regard to headings
prefixed to such Articles or Sections.

                1.8 NUMBER AND GENDER.  Whenever the context requires,
reference herein made to the single number shall be understood to include the
plural; and likewise, the plural shall be understood to include the singular.
Words denoting sex shall be construed to include the masculine, feminine and
neuter, when such construction is appropriate; and specific enumeration shall
not exclude the general but shall be construed as cumulative.  Definitions of
terms defined in the singular or plural shall be equally applicable to the
plural or singular, as the case may be, unless otherwise indicated.


                                          2
<PAGE>

                                      ARTICLE 2.

                                  SECURITY INTEREST

                1.9      GRANT OF SECURITY INTEREST IN COLLATERAL.  The 
Pledgor, for value received, the receipt and sufficiency of which are hereby 
acknowledged, and to induce the Lender to extend credit to or for the benefit 
of the Pledgor, hereby pledges to the Agent for the benefit of the Lenders, 
and its successors and assigns, and hereby grants to the Agent for the 
benefit of the Lenders, and its successors and assigns, a first lien on and a 
security interest in the stock described on Schedule I ("Collateral") to 
secure the Obligations.

                1.10     DELIVERY OF COLLATERAL.  All certificates or
instruments representing or evidencing the Securities shall be delivered to and
held by the Agent for the benefit of the Lenders for the sole purpose of
possession of the Collateral or any portion thereof pursuant to this Security
Agreement, and shall be in suitable form for transfer by delivery, or shall be
accompanied by duly executed instruments of transfer or assignment in blank, all
in form and substance satisfactory to the Agent.  The Agent shall at all times
have actual possession of the Securities and shall be deemed to have possession
of any of the Collateral in transit to it or set apart for it.

                1.11     POWER OF ATTORNEY.  The Pledgor hereby irrevocably
constitutes and appoints the Lender and any authorized officer or agent thereof,
with full power of substitution, as its true and lawful attorney-in-fact with
full irrevocable power and authority in the place and stead of the Pledgor and
in the name of the Pledgor or in its own name, from time to time in the
discretion of the Agent, for the purpose of carrying out the terms of this
Security Agreement, and without notice to the Pledgor, to take any and all
appropriate action and to execute any and all documents and instruments which
may be necessary or desirable to accomplish the purposes of this Security
Agreement, including, without limitation, the following:

          (1)   to transfer to or register any or all of the Collateral in the
                name of the Lender or any of its nominees;

          (2)   to exchange the certificates or instruments representing or
                evidencing the Collateral for certificates or instruments of
                smaller or larger denominations;

          (3)   upon the occurrence and during the continuance of any Event of
                Default, (i) to receive payment of and receipt for any and all
                moneys, claims and other amounts due and to become due at any
                time in respect of or arising out of any Collateral, (ii) to
                commence and prosecute any suits, actions or proceedings at law
                or in equity in any court of competent jurisdiction to collect
                the Collateral or any part thereof and to enforce any other
                right in respect of any Collateral, (iii) to defend any suit,
                action or proceeding brought against the Pledgor with respect
                to any Collateral, (iv) to settle, compromise or adjust any
                suit, action or proceeding described above and, in connection
                therewith, to give such discharges or releases as the Agent may
                deem appropriate, and (v) to


                                          3
<PAGE>

                complete any blanks contained in any instruments of transfer or
                assignment appended to or delivered with the certificates
                representing the Securities; and

          (4)   to exchange any of the Collateral for other Property upon
                reorganization, recapitalization or other readjustment of any
                of the issuers of the Securities and in connection therewith to
                deposit any of the Collateral with any committee or depository
                upon such terms as the Lender may determine; and, subsequent to
                any Event of Default, to exercise, at the option of the Agent,
                voting rights as to any of the Collateral;

all without notice and without liability except to account for Property actually
received by the Lender.

          The Pledgor hereby ratifies all that said attorney shall lawfully do
or cause to be done within the scope of the power of attorney granted hereunder.
This power of attorney is a power coupled with an interest and shall be
irrevocable so long as any Obligation remains outstanding or any Commitment
exists.  The powers conferred on the Lender hereunder are solely to protect the
interests of the Lender in the Collateral and shall not impose any duty upon it
to exercise any such powers.  The Lender shall be accountable only for amounts
that it actually receives as a result of the exercise of such powers, and
neither it nor any of its officers, directors, employees, or agents shall be
responsible to the Pledgor for any act or failure to act, except for gross
negligence.


                                      ARTICLE 3.

                            REPRESENTATIONS AND WARRANTIES

          To induce the Lender to enter into the Credit Agreement and to make
Loans to or for the benefit of the Pledgor, the Pledgor represents and warrants
to the Agent and the Lenders (which representations and warranties shall survive
the delivery of this Security Agreement and the other Loan Documents) that:

                1.12     STATUS OF COLLATERAL.  All signatures on the
certificates evidencing the Securities are genuine or authorized; the transfer
of the Securities by the Pledgor to the Agent for the benefit of the Lenders are
effective; and the Pledgor knows of no fact that might impair the validity of
the Securities.  The Securities (a) have been duly authorized, validly issued,
drawn, made, and/or accepted, (b) are genuine, validly outstanding, fully paid,
and nonassessable, (c) were not issued in violation of the preemptive rights of
any Person or any agreement by which the Pledgor or any issuer of such
Collateral is bound, and (d) have not been materially altered.

                1.13     NO MATERIAL MISSTATEMENTS.  No information, exhibit, or
report furnished by the Pledgor to the Agent in connection with the negotiation
of this Security Agreement contained or contains any material misstatement of
fact or omitted to state a material fact or any fact necessary to make the
statements contained therein, in light of the circumstances in which they were
made, not misleading.


                                          4
<PAGE>

                1.14     OWNERSHIP AND LIENS.  Except for the security interest
in favor of the Agent for the benefit of the Lenders, the Pledgor owns (and at
the time of transfer or delivery of the Collateral to the Agent for the benefit
of the Lenders owned or will own) good and indefeasible title to the Collateral
free and clear of any other security interests, liens, adverse claims, or
options; the Pledgor has (and at the time of transfer or delivery of the
Collateral to the Agent for the benefit of the Lenders had or will have) full
right, power, and authority to convey, assign, transfer, and deliver the
Collateral to the Agent for the benefit of the Lenders and to grant a security
interest in the Collateral to the Lender in the manner provided herein.


                                      ARTICLE 4.

                               COVENANTS AND AGREEMENTS

          Unless agreed in writing by the Agent to the contrary, the Pledgor
agrees, so long as any Obligation remains outstanding or unpaid or any
Commitment exists:

                1.15     PAYMENT OF ASSESSMENTS AND CHARGES.  To pay all taxes,
charges, liens and assessments against the Collateral; and upon the failure of
the Pledgor to do so, the Agent at its option may, but will not be obligated to,
pay any of them.

                1.16     DELIVERY OF COLLATERAL.  That any and all (a) dividends
paid or payable other than in cash and all instruments and other property
received, receivable or otherwise distributed in respect of or in exchange for
any Collateral, (b) dividends and other distributions paid or payable in cash in
respect of any Collateral in connection with a partial or total liquidation or
dissolution or in connection with a reduction of capital, capital surplus or
paid-in surplus, and (c) cash paid, payable or otherwise distributed in respect
of principal of, in redemption of or in exchange for any Collateral, shall be
forthwith delivered to the Agent to hold as Collateral for the benefit of the
Agent and shall, if received by the Pledgor, be received in trust for the
benefit of the Lender, be segregated from the other property or funds of the
Pledgor, and be forthwith delivered to the Lender as Collateral in the same form
as so received (with any necessary endorsement).

                1.17     FURTHER ASSURANCES.  To promptly cure any defects in
the execution and delivery of this Security Agreement and execute, acknowledge,
and deliver such other assurances and instruments and take such other action as
shall, in the opinion of the Agent, be necessary to fulfill the terms of this
Security Agreement and to confirm, perfect, and preserve the security interest
created and intended to be created hereby and to vest more completely in and
assure to the Lender its rights under this Security Agreement.

                1.18     PROHIBITED LIENS AND FILINGS.  That it will not pledge,
mortgage, or otherwise encumber, create, or suffer a security interest to exist
in any of the Collateral (other than in favor of the Agent) or sell, assign, or
otherwise transfer any of the Collateral to anyone other than the Lender or file
or permit to be filed any financing statement or other security instrument with
respect to the Collateral other than in favor of the Agent.


                                          5
<PAGE>


                                      ARTICLE 5.

                                 RIGHTS AND REMEDIES

                1.19     REMEDIES UPON DEFAULT.    Upon the occurrence and
during the continuance of an Event of Default, the Agent may, at its option,
declare all Obligations immediately due and payable, without presentment,
demand, protest, notice of protest, default or dishonor, notice of intent to
accelerate maturity, notice of acceleration of maturity or other notice of any
kind, all of which are hereby expressly waived by the Pledgor, and may exercise
any and all other remedies provided by law or pursuant to the Loan Documents.

          (1)   If all or any part of the Obligations shall become due and
                payable, the Lender may then, or at any time thereafter, apply,
                set-off, collect, sell in one or more sales, or otherwise
                dispose of, any or all of the Collateral, in its then condition
                or following any commercially reasonable preparation or
                processing, in such order as the Agent may elect.  Any such
                sale may be made either at public or private sale at the place
                of business of the Agent, any brokers' board or securities
                exchange or elsewhere, either for cash or upon credit or for
                future delivery, at such price as the Lender may deem fair.
                The Agent may be the purchaser of any or all Collateral so sold
                and may hold the same thereafter in its own right free from any
                claim of the Pledgor or right of redemption.  No such purchase
                or holding by the Lender shall be deemed a retention by the
                Agent in satisfaction of the Obligations.  All demands,
                notices, and advertisements, and the presentment of property at
                sale are hereby waived.  If, notwithstanding the foregoing
                provisions, any applicable provision of the Uniform Commercial
                Code or other law requires the Lender to give reasonable notice
                of any such sale or disposition or other action, ten days'
                prior written notice shall constitute reasonable notice.  The
                Agent may require the Pledgor to assemble the Collateral and
                make it available to the Agent at a place designated by the
                Lender that is reasonably convenient to the Agent and the
                Pledgor.  Any sale hereunder may be conducted by an auctioneer
                or any officer or agent of the Agent.

          (2)   In connection with the sale of Collateral which is stock or
                other investment securities, the Agent must limit prospective
                purchasers to the extent deemed necessary or advisable by the
                Lender to render such sale exempt from the registration
                requirements of the Securities Act of 1933, as amended (the
                "ACT"), and any applicable state securities laws.  No sale so
                made in good faith by the Lender shall be deemed not to be
                "commercially reasonable" because so made; provided, however,
                that nothing in this Security Agreement shall be deemed to
                impose any obligation whatsoever to file a registration
                statement under the Act or any state securities law with
                respect to any sale of Collateral by the Agent.

                1.20     VOTING RIGHTS, DIVIDENDS, ETC. PRIOR TO DEFAULT.   So
long as no Event of Default shall have occurred and be continuing:


                                          6
<PAGE>

          (1)   the Pledgor will be entitled to exercise any and all voting and
                other consensual rights pertaining to the Collateral or any
                part thereof for any purpose not inconsistent with the terms of
                this Security Agreement;

          (2)   subject to the further provisions of this Security Agreement,
                the Pledgor shall be entitled to receive and retain any and all
                dividends paid in respect of the Collateral; provided, however,
                that any and all

                (1)   dividends paid or payable other than in cash and all
                    instruments and other Property received, receivable, or
                    otherwise distributed in respect of or in exchange for
                    any Collateral,

                (2)   dividends and other distributions paid or payable in
                    cash in respect of any Collateral in connection with a
                    partial or total liquidation or dissolution or in
                    connection with a reduction of capital, capital surplus
                    or paid-in surplus, and

                (3)   cash paid, payable or otherwise distributed in
                    respect of principal of, in redemption of or in
                    exchange for any Collateral,

shall be forthwith delivered to the Agent to hold as Collateral and shall, if
received by the Pledgor, be received in trust for the benefit of the Agent, be
segregated from the other property or funds of the Pledgor, and be forthwith
delivered to the Agent as Collateral in the same form as so received (with any
necessary endorsement); and

          (3)   the Agent shall execute and deliver (or cause to be executed
                and delivered) to the Pledgor all such proxies and other
                instruments as the Pledgor may reasonably request for the
                purpose of enabling the Pledgor to exercise the voting and
                other rights which it is entitled to exercise pursuant to
                Section 5.2(a) above and to receive the dividends which it is
                authorized to receive and retain.

                1.21     VOTING RIGHTS, DIVIDENDS, ETC. AFTER DEFAULT.  Upon the
occurrence and during the continuance of an Event of Default:

          (1)   at the option of the Agent with notice to the Pledgor, all
                rights of the Pledgor to exercise the voting and other
                consensual rights which it would otherwise be entitled to
                exercise pursuant to Section 5.2(a) above and to receive the
                dividends which it would otherwise be authorized to receive and
                retain pursuant to Section 5.2(b) above shall cease and shall
                thereupon become vested in the Agent, who shall thereupon have
                the sole right to exercise such voting and other consensual
                rights and to receive and hold as Collateral such dividends;
                and

          (2)   all dividends which are received by the Pledgor contrary to the
                provisions of Section 5.3(a) above shall be received in trust
                for the benefit of the Lender,


                                          7
<PAGE>

                shall be segregated from other funds of the Pledgor and shall
                be forthwith paid over to the Agent as Collateral in the same
                form as so received (with any necessary endorsement).

                1.22     PROCEEDS.  Prior to all or any part of the Obligations
becoming due and payable as specified in Section 7.3 of the Credit Agreement,
all cash sums or other property received by the Agent on account of the
Collateral shall be held as Collateral.  After all or any part of the
Obligations shall become due and payable as specified in Section 7.3 of the
Credit Agreement, the proceeds of any sale or other disposition of the
Collateral and all sums received or collected by the Agent from or on account of
the Collateral shall be applied by the Lender in the manner set forth in Section
9.504 of the UCC.

                1.23     AGENT DUTIES.  The Agent shall be under no duty
whatsoever to make or give any presentment, demand for performance, notice of
nonperformance, protest, notice of protest, notice of dishonor, or other notice
or demand in connection with any Collateral or the Obligations, or to take any
steps necessary to preserve any rights against prior parties.  The Agent shall
not be liable for failure to collect or realize upon any or all of the
Obligations or Collateral, or for any delay in so doing, nor shall the Agent be
under any duty to take any action whatsoever with regard thereto.  The Agent
shall use reasonable care in the custody and preservation of any Collateral in
its possession.  The Agent shall have no duty to comply with any recording,
filing, or other legal requirements necessary to establish or maintain the
validity, priority, or enforceability of, or the rights of the Agent in or to,
any of the Collateral.

                1.24     THE AGENT'S ACTIONS.  The Pledgor waives any right to
require the Agent to proceed against any Person, exhaust any collateral or
pursue any other remedy in the power of the Lender; waives any and all notice of
acceptance of this Security Agreement or of creation, modification, renewal, or
extension for any period of any Obligations; and waives any defense arising by
reason of any disability or other defense of any guarantor or other Person
primarily or secondarily liable with respect to all or any portion of the
Obligations ("OTHER LIABLE PARTY"), or by reason of the cessation from any cause
whatsoever of the liability of any Other Liable Party.  All dealings between the
Pledgor and the Agent shall conclusively be presumed to have been had or
consummated in reliance upon this Security Agreement.  Until all Obligations
shall have been paid and/or performed in full and the Commitment shall have
terminated, the Pledgor (a) shall have no right to subrogation, (b) waives any
right to enforce any remedy that the Lender now has or may hereafter have
against any Other Liable Party, and (c) except as otherwise expressly provided
in this Security Agreement, waives any benefit of and right to participate in
any collateral or security whatsoever now or hereafter held by the Agent.


                                          8
<PAGE>

                                      ARTICLE 6.

                                    MISCELLANEOUS

                1.25     TRANSFER OF OBLIGATIONS AND COLLATERAL.  Subject to the
terms of the Credit Agreement, the Pledgor hereby agrees that the Agent and/or
Lenders may transfer any or all of the Obligations.  Upon any such transfer, the
Agent and/or Lenders may transfer their rights in the Collateral and shall be
fully discharged thereafter from all liability with respect to the Collateral so
transferred, and the transferee shall be vested with all rights, powers, and
remedies of the Agent and/or Lenders hereunder with respect to Collateral so
transferred.  With respect to any Collateral not so transferred, the Lender
shall retain all rights, powers, and remedies hereby given.  The Agent and/or
Lenders may at any time deliver any or all of the Collateral to the Pledgor,
whose receipt shall be a complete and full acquittance for the Collateral so
delivered, and the Agent and/or Lenders shall thereafter be discharged from any
liability therefor.

                1.26     CUMULATIVE SECURITY.  The execution and delivery of
this Security Agreement in no manner shall impair or affect any other security
(by endorsement or otherwise) for the payment of the Obligations.  No security
taken hereafter as security for payment of all or any portion of the Obligations
shall impair in any manner or affect this Security Agreement.  All such present
and future additional security is to be considered as cumulative security.

                1.27     CONTINUING AGREEMENT.  This is a continuing agreement
and the conveyance hereunder shall remain in full force and effect and all the
rights, powers, and remedies of the Agent and/or Lenders hereunder shall
continue to exist until the Obligations shall be paid in full as the same become
due and payable, the Commitment has terminated, and the Agent, upon request of
the Pledgor, has executed a written termination statement, reassigned to the
Pledgor, without recourse, the Collateral and all rights and liens conveyed
hereby and returned possession of the Collateral to the Pledgor.  Furthermore,
it is contemplated by the parties hereto that there may be times when no
Obligations shall be owing.  Notwithstanding such occurrences, this Security
Agreement shall remain valid and shall be in full force and effect as to
subsequent Obligations provided that the Agent has not executed a written
termination statement and returned possession of the Collateral to the Pledgor.
Otherwise, this Security Agreement shall continue irrespective of the fact that
the liability of the Pledgor or any Other Liable Party may have ceased and
notwithstanding the death or incapacity of the Pledgor or any Other Liable Party
or any other event or proceeding affecting the Pledgor and/or any Other Liable
Party.

                1.28     CUMULATIVE RIGHTS.  The rights, powers, and remedies of
the Agent and the Lenders hereunder shall be in addition to all rights, powers,
and remedies given by statute or rule of law and are cumulative.  The exercise
of any one or more of the rights, powers, and remedies provided herein shall not
be construed as a waiver of any other rights, powers, and remedies.  The Agent
and the Lenders shall have the rights, powers, and remedies of a secured party
under the Texas Business and Commerce Code, as amended.

                1.29     EXERCISE OF RIGHTS.  Time shall be of the essence for
the performance of any act under this Security Agreement by the Pledgor, but
neither the Agent or the Lenders' acceptance of partial or delinquent payments
nor any forbearance, failure, or delay by the Agent


                                          9
<PAGE>

or the Lenders in exercising any right, power or remedy shall be deemed a waiver
of any obligation of the Pledgor or any Other Liable Party or of any right,
power, or remedy of the Agent or the Lenders or preclude any other or further
exercise thereof; and no single or partial exercise of any right, power, or
remedy shall preclude any other or further exercise thereof or the exercise of
any other right, power, or remedy.

                1.30     REMEDY AND WAIVER.  The Agent may remedy or waive any
default hereunder without waiving the default remedied or waiving any prior or
subsequent default.

                1.31     NON-JUDICIAL REMEDIES.  The Agent and the Lenders may
enforce their rights hereunder without prior judicial process or judicial
hearing.  The Pledgor expressly waives, renounces, and knowingly relinquishes
any and all legal rights which might otherwise require the Agent and the Lenders
to enforce their rights by judicial process.  In so providing for non-judicial
remedies, the Pledgor recognizes and concedes that such remedies are consistent
with the usage of the trade, are responsive to commercial necessity and are the
result of bargain at arm's length.  Nothing herein is intended to prevent the
Lender or the Pledgor from resorting to judicial process at such party's option.

                1.32     PRESERVATION OF LIABILITY.  Neither this Security
Agreement nor the exercise by the Agent or the Lenders of (or the failure to so
exercise) any right, power, or remedy conferred herein or by law shall be
construed as relieving the Pledgor or any Other Liable Party from full liability
thereon and for any deficiency thereon.

                1.33     NOTICES AND OTHER COMMUNICATIONS.  Except as to verbal
notices expressly authorized herein, which verbal notices shall be confirmed in
writing, all notices, requests, and communications hereunder shall be in writing
(including by telecopy).  Unless otherwise expressly provided herein, any such
notice, request, demand, or other communication shall be deemed to have been
duly given or made when delivered by hand, or, in the case of delivery by mail,
when deposited in the mail, certified mail, return receipt requested, postage
prepaid, or, in the case of telecopy notice, when receipt thereof is
acknowledged orally or by written confirmation report, addressed as follows:

          (1)   if to the Agent, to:

                Compass Bank
                24 Greenway Plaza, Suite 1401
                Houston, Texas 77046
                Attention:  Energy Lending Group
                Telecopy:  (713) 968-8292

          (2)   if to the Pledgor, to

                Edge Petroleum Corporation
                2100 Texaco Heritage Plaza
                Houston, Texas 77002
                Attention: Michael G. Long


                                          10
<PAGE>

                Telecopy: (713) 650-6494

          Any party may, by proper written notice hereunder to the others,
change the individuals or addresses to which such notices to it shall thereafter
be sent.

                1.34     PARTIES IN INTEREST.  All covenants and agreements
herein contained by or on behalf of the Pledgor or the Agent and the Lenders
shall be binding upon and inure to the benefit of the Pledgor or the Agent and
the Lenders, as the case may be, and their respective legal representatives,
successors, and assigns.

                1.35     AMENDMENT AND WAIVER.  This Security Agreement may not
be amended nor may any of its terms be waived except in writing duly signed by
the party against whom enforcement of the amendment or waiver is sought.

                1.36     INVALIDITY.  If any provision of this Security
Agreement is rendered or declared illegal, invalid, or unenforceable by reason
of any existing or subsequently enacted legislation or by a judicial decision
that has become final, the Pledgor and the Agent shall promptly meet and
negotiate substitute provisions for those rendered illegal, invalid, or
unenforceable, but all of the remaining provisions shall remain in full force
and effect.

                1.37     GOVERNING LAW.  THIS SECURITY AGREEMENT SHALL BE DEEMED
TO BE A CONTRACT MADE UNDER AND SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF TEXAS WITHOUT GIVING EFFECT TO PRINCIPLES
THEREOF RELATING TO CONFLICTS OF LAW, PROVIDED, HOWEVER, THAT VERNON'S TEXAS
CIVIL STATUTES, ARTICLE 5069, CHAPTER 15 (WHICH REGULATES CERTAIN REVOLVING
CREDIT LOAN ACCOUNTS AND REVOLVING TRI-PARTY ACCOUNTS) SHALL NOT APPLY.

                1.38     JURISDICTION AND VENUE.  ALL ACTIONS OR PROCEEDINGS
WITH RESPECT TO, ARISING DIRECTLY OR INDIRECTLY IN CONNECTION WITH, OUT OF,
RELATED TO, OR FROM THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT TO WHICH
THE PLEDGOR IS A PARTY MAY BE LITIGATED, AT THE SOLE DISCRETION AND ELECTION OF
THE AGENT, IN COURTS HAVING SITUS IN HOUSTON, HARRIS COUNTY, TEXAS.  THE PLEDGOR
HEREBY SUBMITS TO THE JURISDICTION OF ANY LOCAL, STATE, OR FEDERAL COURT LOCATED
IN HOUSTON, HARRIS COUNTY, TEXAS, AND HEREBY WAIVES ANY RIGHTS IT MAY HAVE TO
TRANSFER OR CHANGE THE JURISDICTION OR VENUE OF ANY LITIGATION BROUGHT AGAINST
IT BY THE LENDER IN ACCORDANCE WITH THIS SECTION.

                1.39     WAIVER OF RIGHTS TO JURY TRIAL.  THE PLEDGOR AND THE
AGENT HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY, IRREVOCABLY, AND
UNCONDITIONALLY WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT,
PROCEEDING, COUNTERCLAIM, OR OTHER LITIGATION THAT RELATES TO OR ARISES OUT OF
ANY OF THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE ACTS OR
OMISSIONS OF THE AGENT IN THE ENFORCEMENT OF ANY OF THE TERMS OR PROVISIONS OF
THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT OR OTHERWISE WITH RESPECT
THERETO.  THE PROVISIONS OF THIS SECTION ARE A MATERIAL INDUCEMENT FOR THE
LENDER ENTERING INTO THE CREDIT AGREEMENT.


                                          11
<PAGE>

                1.40     ENTIRE AGREEMENT.  THIS SECURITY AGREEMENT CONSTITUTES
THE ENTIRE AGREEMENT BETWEEN THE PARTIES HERETO WITH RESPECT TO THE SUBJECT
HEREOF AND SHALL SUPERSEDE ANY PRIOR AGREEMENTS, WHETHER WRITTEN OR ORAL,
BETWEEN THE PARTIES HERETO RELATING TO THE SUBJECT HEREOF.  FURTHERMORE, IN THIS
REGARD, THIS SECURITY AGREEMENT AND THE OTHER WRITTEN LOAN DOCUMENTS REPRESENT,
COLLECTIVELY, THE FINAL AGREEMENT AMONG THE PARTIES THERETO AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF SUCH PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG SUCH
PARTIES.

                1.41     COUNTERPARTS.  For the convenience of the parties, this
Security Agreement may be executed in multiple counterparts and by different
parties hereto in separate counterparts, each of which for all purposes shall be
deemed to be an original and all of which together shall constitute one and the
same Security Agreement.

          IN WITNESS WHEREOF, this Security Agreement is executed as of the date
first above written.

                              PLEDGOR:

                              EDGE PETROLEUM CORPORATION




                              By:  /s/ Michael G. Long
                                 -----------------------------------------------
                                   Michael G. Long
                                   Chief Financial Officer




                              AGENT:

                              COMPASS BANK, AGENT




                              By:  /s/ Allison Hammer
                                 -----------------------------------------------
                                   Allison Hammer
                                   Vice President


                                          12
<PAGE>


                                      SCHEDULE I

<TABLE>
<CAPTION>

                                           Stock                    Number
                         Class of       Certificate     Par           of
Issuer                    Stock             No.        Value        Shares
------                   --------       -----------    -----        ------
<S>                      <C>            <C>            <C>          <C>
Edge Petroleum           Common              1         $0.01         100
Exploration Company
</TABLE>

                                         I-i