Abraxas Provides Operational and Financial Update

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

Williston Basin


In McKenzie County, North Dakota, Abraxas recently reached TD on the lateral of the Lillibridge 5H at 20,660 feet. Drilling operations on the Lillibridge West pad are now effectively complete approximately one month ahead of schedule. Completion of the four well pad is scheduled for late October. Abraxas owns a working interest of approximately 34% in both the Lillibridge East and West pads.

After reaming and casing the lateral of the Lillibridge 5H, Abraxas' company-owned drilling rig, the Raven 1, will mobilize to the Jore pad to drill the Jore 1H, Jore 2H, and Jore 4H. Abraxas holds a 76% working interest in the Jore pad.

Eagle Ford Shale

In McMullen County, Texas, the Gran Torino A 11H averaged 466 boepd (388 barrels of oil per day, 465 mcf of natural gas per day) over the well's first 30 full days of production. The recently completed Sting Ray A 8H appears to be an exceptional producer, averaging 1,233 boepd (1,104 barrels of oil per day, 773 mcf of natural gas per day) over the most recent five days of production. The production rates for each well do not include the impact of natural gas liquids and shrinkage at the processing plant. The company recently reached TD on the Camaro A 1H. Abraxas owns an 18.75% working interest in the Sting Ray A 8H and Gran Torino A 11H and a 25% working interest in the Camaro A 1H.

In Atascosa County, Abraxas is currently rigging up on the Blue Eyes 1H at the company's Jourdanton prospect. Abraxas holds a 100% working interest in the Blue Eyes 1H.

Permian Basin

In Nolan County, Texas, Abraxas recently completed and began the flowback of the first stimulated Strawn horizontal on its Spires Ranch prospect, the Spires 129 2H. As this is the first Strawn horizontal well testing the efficacy of a stimulation, Abraxas will provide thirty day stabilized flow rates when available.

Financial Update

Abraxas recently completed its redetermination process with the company's bank group. Abraxas' facility is now governed by a $147 million borrowing base, an increase of $4 million over the previously revised $143 million borrowing base. Importantly, this borrowing base is fully conforming and contains no maturing or stretch features.

As part of the agreement, Abraxas entered into the following incremental hedge positions:

ADDITIONAL HEDGE    
LLS BOPM     Price
CAL2013(1) 8,500 $106.75
CAL2014 3,000 $101.26

(1) 2013 hedges effective October - December 2013

Bob Watson, President and CEO of Abraxas, commented, "We could not be more proud of our operating team, which continues to execute and drive efficiencies in the Eagle Ford and now the Bakken. We will now mobilize both our Bakken and Eagle Ford rigs to higher working interest areas to further accelerate growth. We look forward to updating the market shortly with the results of these efforts."

Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas exploration and production company with operations across the Rocky Mountain, 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
gking@abraxaspetroleum.com
www.abraxaspetroleum.com

KEYWORDS:   United States  North America  Texas

INDUSTRY KEYWORDS:

The article Abraxas Provides Operational and Financial Update originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Investing Like Warren Buffett

Learn from one of the world's best investors.

View Course »

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

Add a Comment

*0 / 3000 Character Maximum