Abraxas Comments on Recent Market Conditions
July 23 2015 - 11:20AM
Business Wire
Abraxas Petroleum Corporation (“Abraxas” or the “Company”)
(NASDAQ:AXAS) today commented on recent market conditions.
Aside from weakness in the general commodity markets, Abraxas is
unaware of any fundamental reason for the Company’s recent stock
price underperformance. Abraxas notes that the Company exited June
30, 2015 $108 million borrowed on the Company’s $165 million
borrowing base. With an additional nine well completions during the
quarter, and only bank debt (as well as nominal amounts for a
building mortgage and rig loan) in the Company’s capital structure,
the Company is very comfortable with its asset coverage.
Additionally, with a $55 million capital program that approximates
forecasted cash flow, the Company remains comfortable this strong
financial positioning should continue through 2015. Moreover, the
Company reiterates that in outer years, it currently forecasts it
can hold production at over 7,000 boepd running a one rig Bakken
program, which approximates a $50-$60 million capital program.
Abraxas also reiterates the Company’s 2015 production guidance of
6,500-7,000 boepd.
Abraxas plans to close out the Company’s second quarter
production and financial results the week of July 27, 2015. In the
coming week Abraxas will also have 30 day rates for the Company’s
four Bakken and two Eagle Ford completions. When these results are
available, Abraxas will furnish them to the Street.
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.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150723006037/en/
Abraxas Petroleum CorporationGeoffrey King, 210-490-4788Vice
President – Chief Financial
Officergking@abraxaspetroleum.comwww.abraxaspetroleum.com
Abraxas Petroleum (CE) (USOTC:AXAS)
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