Abraxas Provides Operational and Financial Update, Announces Upcoming Presentations

SAN ANTONIO--(BUSINESS WIRE)-- Abraxas Petroleum Corporation (NAS: AXAS) is pleased to provide the following operational and financial update, announces upcoming presentations.

Eagle Ford Shale

In McMullen County, the Gran Torino A 1H averaged 790 boepd (701 barrels of oil per day, 532 mcf of natural gas per day) on a restricted choke over its first 30 days of production. The Gran Torino A 1H is currently flowing to sales at a rate of 720 boepd (635 barrels of oil per day, 509 mcf of natural gas per day) on a 22/64" choke. The Mustang 3H continues to flow to sales at rates significantly above the Company's type curve. Additionally, the Company drilled, completed and turned to sales the Mustang 3H for approximately $6.2 million. The Mustang 2H is currently being completed with a 19 stage fracture stimulation. The Sting Ray A 1H, the Company's first 7,500 foot lateral well, is currently drilling at a depth of 15,005 feet. Abraxas owns an 18.75% working interest in the Gran Torino A 1H, Mustang 3H, Mustang 2H and Sting Ray A 1H.

Williston Basin

Drilling continues on the Company's Lillibridge East PAD with the laterals drilled and cased on the 3H and 4H. The Company is currently spudding the lateral on the 2H, which will be followed by the 1H. Abraxas owns a working interest of approximately 34% in the Lillibridge East PAD. The Ravin 2H averaged 421 boepd (333 barrels of oil per day, 526 mcf of natural gas per day) on a 22/64" choke over its first 30 days of production. The Ravin 3H is currently shut in while the Company pulls the 4½" tie back string to install long term production equipment. Thirty day rates are expected shortly. Before being shut in, the well was producing at rates significantly above the Company's type curve. The completion of the Ravin 2H and 3H also had a positive impact on the previously drilled offsetting Ravin 1H, which averaged 630 boepd (534 barrels of oil per day, 577 mcf of natural gas per day) over its first seven days since returning to production. The Ravin 1H previously produced approximately 150 boepd before being shut in during the Ravin 2H and 3H completions. Abraxas owns a 49% working interest in the Ravin 1H, 2H and 3H.

Permian Basin

The Company recently drilled and cased two shallow Yates wells, the Wilkes #1 and Wilkes #2, in Ward County, Texas. The Company is currently testing the Yates C sand in the Wilkes #2 well, to be followed by the Yates B, Yates A and Tensill. Abraxas owns a 100% working interest in both wells.

Financial Update

Abraxas recently closed its Fourth Amended and Restated Credit Agreement with the Company's bank group. The facility is governed by a $155 million borrowing base, an increase of $5 million over the previous $150 million borrowing base. Unless redetermined otherwise based on new reserve and production information from the June 30, 2013 engineering report, the borrowing base would reduce to $145 million on October 1, 2013. Management and the bank group anticipate the facility will be redetermined in a timely manner post the Company providing its June 30, 2013 reserve report.

As part of the revised agreement, the Company entered into a more standard covenant package resulting in the removal of the $7.5 million quarter end liquidity covenant. The agreement was also adjusted to remove debt associated with the Company's wholly owned subsidiary, Raven Drilling, from all debt calculations. Additionally, Abraxas is pleased to announce that the Company added an incremental member to its bank facility during the redetermination process, Mutual of Omaha.

As part of the agreement, Abraxas entered into incremental hedge positions to protect the Company's cash flows. In an effort to better correlate hedge prices to the Company's realized prices in the Gulf Coast and Eagle Ford, which have dislocated to a substantial premium to WTI, the Company added and restructured several existing WTI hedges to Brent. The incremental hedges and restructured positions can be found below:












CAL2013(1) 5,300 $ 105.45
CAL2014 2,750 $ 100.75
CAL2015 3,800 $ 96.78
CAL2016 2,400 $ 85.15
CAL2017 15,000 $ 84.18







CAL2013(1) (10,000 ) $ 92.58 10,000 $ 104.76
CAL2014 (12,400 ) $ 89.97 12,400 $ 100.52
CAL2015 (11,200 ) $ 87.95 11,200 $ 97.13

(1) 2013 hedges effective April - December 2013

Upcoming Presentations

Cannaccord Genuity will be hosting Geoff King, Vice President and CFO of Abraxas, on a non-deal road show in Boston and New York on April 10-11. An updated presentation from this non-deal road show will be accessible on the Company's website.

Bob Watson, President and CEO of Abraxas, will be presenting at IPAA OGIS in New York on Monday, April 15, 2013 at 11:20 AM EDT. A webcast of this presentation will be accessible on the Company's website or by using the following link (http://www.investorcalendar.com/CEPage.asp?ID=170756).

Bob Watson, President and CEO of Abraxas, commented, "Abraxas continues to add incremental, high rate oil wells to its production and reserve base well above the Company's original expectations. The Ravin 3H, Gran Torino A 1H and especially the Mustang 2H provide further confirmation of the quality of Abraxas' core acreage positions in the Bakken and Eagle Ford. Furthermore, although the industry has noted the impact offsetting completions have had on previously drilled wells in the Bakken, the high production rates Abraxas witnessed on the offsetting Ravin 1H post the Ravin 2H and 3H completions were a positive surprise. Additionally, we are pleased that our growing reserve base and improved financial position continues to be acknowledged by our highly supportive bank group as evidenced by another increase to our bank facility, the removal of the quarter end liquidity covenant and the addition of an incremental member to our bank group."

Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas exploration and production company with operations across the Rocky Mountain, Mid-Continent, Permian Basin and onshore Gulf Coast regions of the United States and in the province of Alberta, Canada.

Safe Harbor for forward-looking statements: Statements in this release looking forward in time involve known and unknown risks and uncertainties, which may cause Abraxas' actual results in future periods to be materially different from any future performance suggested in this release. Such factors may include, but may not be necessarily limited to, changes in the prices received by Abraxas for crude oil and natural gas. In addition, Abraxas' future crude oil and natural gas production is highly dependent upon Abraxas' level of success in acquiring or finding additional reserves. Further, Abraxas operates in an industry sector where the value of securities is highly volatile and may be influenced by economic and other factors beyond Abraxas' control. In the context of forward-looking information provided for in this release, reference is made to the discussion of risk factors detailed in Abraxas' filings with the Securities and Exchange Commission during the past 12 months.

Abraxas Petroleum Corporation
Geoffrey King, 210-490-4788
Vice President - Chief Financial Officer

KEYWORDS:   United States  North America  Texas


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