**Exhibit 99.1**

 

March 3, 2006

 

Edge Petroleum Corporation

1301 Travis Street, Suite 2000

Houston, Texas 77002

 

Gentlemen:

 

At your request, we have prepared an estimate of thereserves, future production, and income attributable to certain leasehold androyalty interests of Edge Petroleum Corporation (Edge) as of December 31, 2005.The subject properties are located in the states of Alabama, Louisiana,Michigan, Mississippi, New Mexico, and Texas. The income data were estimatedusing the Securities and Exchange Commission (SEC) guidelines for future priceand cost parameters.

 

The estimated reserves and future income amountspresented in this report are related to hydrocarbon prices. December 31, 2005hydrocarbon prices were used in the preparation of this report as required bySEC guidelines; however, actual future prices may vary significantly fromDecember 31, 2005 prices. Therefore, volumes of reserves actually recovered andamounts of income actually received may differ significantly from the estimatedquantities presented in this report. The results of this study are summarizedbelow.

 

**SEC PARAMETERS**

Estimated Net Reserves and Income Data

Certain Leasehold and Royalty Interests of

**Edge Petroleum Corporation**

**As of December 31, 2005**

 
| ** **                    | ** ** | **Proved**    | ** ** |
|-------------------------------|------------|---------------|------------|
| ** **                    | ** ** | **Developed** | ** ** | ** ** | ** ** | **Total  Proved** | ** ** |
| ** **                    | ** ** | **Producing** | ** ** | **Non-Producing** | ** ** | **Undeveloped** | ** ** | ** ** |
| ***Net Remaining Reserves***  |       |          |       |   |   |   |   |   |   |
| Oil/Condensate – Barrels |       | 705,874       |       | 700,042 |   | 221,902 |   | 1,627,818 |   |
| Plant Products – Barrels |       | 768,620       |       | 362,998 |   | 101,962 |   | 1,233,580 |   |
| Gas – MMCF               |       | 24,171        |       | 13,277 |   | 8,547 |   | 45,995 |   |
|                          |       |          |       |   |   |   |   |   |   |
| ***Income Data ($M)***        |       |          |       |   |   |   |   |   |   |
| Future Gross Revenue          |       | $             | 270,560.6  |   | $ | 165,776.7 |   | $ | 91,627.8 |   | $ | 527,965.1 |   |
| Deductions                    |       | 52,559.2      |       | 22,350.1 |   | 31,216.0 |   | 106,125.3 |   |
| Future Net Income (FNI)       |       | $             | 218,001.4  |   | $ | 143,426.6 |   | $ | 60,411.8 |   | $ | 421,839.8 |   |
|                          |       |          |       |   |   |   |   |   |   |
| Discounted FNI @ 10%          |       | $             | 164,589.8  |   | $ | 71,142.5 |   | $ | 40,626.5 |   | $ | 276,358.8 |   |

 

Liquid hydrocarbons are expressed in standard 42gallon barrels. All gas volumes are sales gas expressed in millions of cubicfeet (MMCF) at the official temperature and pressure bases of the areas inwhich the gas reserves are located.

 

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The future gross revenue is after the deduction ofproduction taxes. The deductions are comprised of the normal direct costs ofoperating the wells, ad valorem taxes, recompletion costs, and developmentcosts. The future net income is before the deduction of state and federalincome taxes and general administrative overhead, and has not been adjusted foroutstanding loans that may exist nor does it include any adjustment for cash onhand or undistributed income. No attempt was made to quantify or otherwiseaccount for any accumulated gas production imbalances that may exist. Gasreserves account for approximately 79 percent and liquid hydrocarbon reservesaccount for the remaining 21 percent of total future gross revenue from provedreserves.

 

The discounted future net income shown above wascalculated using a discount rate of 10 percent per annum compounded monthly. Futurenet income was discounted at four other discount rates which were alsocompounded monthly. These results are shown on each estimated projection offuture production and income presented in a later section of this report and insummary form below.

 
| ** **                  | ** ** | **Discounted Future Net Income ($M)  As of December 31, 2005** | ** ** |
|-----------------------------|------------|----------------------------------------------------------------|------------|
| **Discount  Rate  Percent** | ** ** | **Total  Proved**                                              | ** ** |
|                        |       |                                                           |       |
| 12                          |       | $                                                              | 259,861.5  |   |
| 15                          |       | $                                                              | 239,111.0  |   |
| 20                          |       | $                                                              | 212,161.2  |   |
| 25                          |       | $                                                              | 191,675.6  |   |

 

The results shown above are presented for yourinformation and should not be construed as our estimate of fair market value.

 

***Reserves Included in This Report***

 

The proved reserves included herein conform tothe definition as set forth in the Securities and Exchange Commission’sRegulation S-X Part 210.4-10 (a) as clarified by subsequent Commission Staff AccountingBulletins. The definitions of proved reserves are included in the sectionentitled “Petroleum Reserves Definitions” which is attached with this report.

 

Because of the direct relationship between volumes ofproved undeveloped reserves and development plans, we include in the provedundeveloped category only reserves assigned to undeveloped locations that wehave been assured will definitely be drilled, and reserves assigned to theundeveloped portions of secondary or tertiary projects which we have beenassured will definitely be developed.

 

The proved developed non-producing reserves includedherein are comprised of shut-in and behind pipe categories. The various reservestatus categories are defined in the section entitled “Petroleum Reserves Definitions”which is attached with this report.

 

***Estimates of Reserves***

 

In general, the reserves included herein wereestimated by performance methods or the volumetric method; however, othermethods were used in certain cases where characteristics of the data indicatedsuch other methods were more appropriate in our opinion. The reserves estimatedby the performance method utilized extrapolations of various historical data inthose cases where such data were definitive. Reserves were estimated by thevolumetric method in those cases where there 

 

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were inadequatehistorical performance data to establish a definitive trend or where the use ofproduction performance data as a basis for the reserve estimates was consideredto be inappropriate.

 

The reserves included in this report are estimatesonly and should not be construed as being exact quantities. They may or may notbe actually recovered, and if recovered, the revenues therefrom and the actualcosts related thereto could be more or less than the estimated amounts. Moreover,estimates of reserves may increase or decrease as a result of futureoperations.

 

***Future Production Rates***

 

Initial production rates are based on the currentproducing rates for those wells now on production. Test data and other relatedinformation were used to estimate the anticipated initial production rates forthose wells or locations which are not currently producing. If no productiondecline trend has been established, future production rates were held constant,or adjusted for the effects of curtailment where appropriate, until a declinein ability to produce was anticipated. An estimated rate of decline was thenapplied to depletion of the reserves. If a decline trend has been established,this trend was used as the basis for estimating future production rates. Forreserves not yet on production, sales were estimated to commence at ananticipated date furnished by Edge.

 

The future production rates from wells now onproduction may be more or less than estimated because of changes in marketdemand or allowables set by regulatory bodies. Wells or locations which are notcurrently producing may start producing earlier or later than anticipated inour estimates of their future production rates.

 

***Hydrocarbon Prices***

 

Edge furnished us with hydrocarbon prices in effect atDecember 31, 2005 and with its forecasts of future prices which take intoaccount SEC and Financial Accounting Standards Board (FASB) rules, currentmarket prices, contract prices, and fixed and determinable price escalationswhere applicable.

 

In accordance with FASB Statement No. 69, December 31,2005 market prices were determined using the daily oil price or daily gas salesprice (“spot price”) adjusted for oilfield or gas gathering hub and wellheadprice differences (e.g. grade, transportation, gravity, sulfur and BS&W) asappropriate. Also in accordance with SEC and FASB specifications, changes inmarket prices subsequent to December 31, 2005 were not considered in thisreport.

 

For hydrocarbon products sold under contract, thecontract price including fixed and determinable escalations, exclusive ofinflation adjustments, was used until expiration of the contract. Upon contractexpiration, the price was adjusted to the current market price for the area andheld at this adjusted price to depletion of the reserves.

 

***Costs***

 

Operating costs for the leases and wells in thisreport are based on information provided by Edge and include only those costsdirectly applicable to the leases or wells. When applicable, the operating costsinclude a portion of general and administrative costs allocated directly to theleases and wells under terms of operating agreements. No deduction was made forindirect costs such as general administration and overhead expenses, loanrepayments, interest expenses, and exploration and development prepayments thatare not charged directly to the leases or wells.

 

Development costs were furnished to us by Edge and arebased on authorizations for expenditure for the proposed work or actual costsfor similar projects. The estimated net cost of 

 

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abandonment aftersalvage was included for properties where abandonment costs net of salvage aresignificant. At the request of Edge, their estimate of zero abandonment costsafter salvage value for onshore properties was used in this report. Ryder Scotthas not performed a detailed study of the abandonment costs nor the salvagevalue and makes no warranty for Edge’s estimate.

 

Current costs were held constant throughout the lifeof the properties.

 

***General***

 

While it may reasonably be anticipated that the futureprices received for the sale of production and the operating costs and othercosts relating to such production may also increase or decrease from existinglevels, such changes were, in accordance with rules adopted by the SEC, omittedfrom consideration in making this evaluation.

 

The estimates of reserves presented herein were basedupon a detailed study of the properties in which Edge owns an interest;however, we have not made any field examination of the properties. Noconsideration was given in this report to potential environmental liabilitieswhich may exist nor were any costs included for potential liability to restoreand clean up damages, if any, caused by past operating practices. Edge hasinformed us that they have furnished us all of the accounts, records,geological and engineering data, and reports and other data required for thisinvestigation. The ownership interests, prices, and other factual datafurnished by Edge were accepted without independent verification. The estimatespresented in this report are based on data available through December 2005.

 

Edge has assured us of theirintent and ability to proceed with the development activities included in thisreport, and that they are not aware of any legal, regulatory or politicalobstacles that would significantly alter their plans.

 

Neither we nor any of our employees have any interestin the subject properties and neither the employment to make this study nor thecompensation is contingent on our estimates of reserves and future income forthe subject properties.

 

This report was prepared for the exclusive use andsole benefit of Edge Petroleum Corporation and may not be put to other usewithout our prior written consent for such use. The data, work papers, and mapsused in this report are available for examination by authorized parties in ouroffices. Please contact us if we can be of further service.

 
|   | Very truly yours,             |
|--------|-------------------------------|
|   |                          |
|   | **RYDER SCOTT COMPANY, L.P.** |
|   |                          |
|   |                          |
|   | /s/ MIKE F. STELL             |   |
|   | Michael F. Stell, P.E.        |
|   | Senior Vice President         |

 

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