Abraxas Provides Operations Update
July 28 2015 - 4:30PM
Business Wire
Abraxas Petroleum Corporation (“Abraxas” or the “Company”)
(NASDAQ:AXAS) today provided the following operations update.
Williston Basin
At Abraxas’ North Fork prospect, in McKenzie County, North
Dakota, the Jore 5H, Jore 6H, Jore 7H and Jore 8H, producing from
the Middle Bakken, averaged 819 boepd (653 barrels of oil per day,
994 mcf of natural gas per day) (1) over the wells’ peak 30 days of
production. Each well was constrained on a smaller than normal
choke to minimize flaring. To date, total drill and complete costs
(before any needed expenditures for pump) averaged $6.3 million. On
the Ravin Northwest pad, the Ravin 8H, Sten–Rav 1H and Stenehjem 5H
are scheduled to be completed in August. Recently, Abraxas
successfully mobilized to the Stenehjem 10H-15H pad where it is
currently drilling the intermediate section on the first well of a
six well pad. Abraxas owns a working interest of approximately 76%,
74% and 78% in the Jore 5H-8H, Ravin Northwest wells and Stenehjem
10H-15H, respectively.
Abraxas recently participated in its first Second Bench Three
Forks test, drilled by a third party operator, on a unit directly
offsetting the Company’s North Fork acreage. Early results from the
well are very encouraging with a 24 hour IP of 1,169 boepd (917
barrels of oil per day, 1,510 mcf of natural gas per day) (1). If
the well continues to perform in-line with expectations, Abraxas
has approximately 20 gross incremental Second Bench Three Forks
wells across the Company’s 5 operated units at North Fork and
Lillibridge.
Eagle Ford
At Abraxas’ Dilworth East prospect, in McMullen County, Texas,
the R. Henry 1H averaged 703 boepd (428 barrels of oil per day,
1,649 mcf of natural gas per day) (1) over the well’s peak 30 days
of production. Abraxas holds a 100% working interest in the R.
Henry 1H.
At Abraxas’ Jourdanton prospect in Atascosa County, Texas, the
Grass Farm 2H averaged 191 boepd (179 barrels of oil per day, 70
mcf of natural gas per day) (1) over the well’s peak 30 days of
production. Abraxas owns a 100% working interest in the Grass Farm
2H.
Second Quarter 2015 Production
Production for the second quarter of 2015 averaged approximately
5,471 boepd (3,653 barrels of oil per day, 7,669 mcf of natural gas
per day, 539 barrels of NGLs per day). Production volumes for the
quarter were negatively impacted by an estimated 433 boepd due to
gas processing constraints and related curtailments in the Bakken
and Permian. Downtime associated with offsetting fracture
stimulations also negatively impacted volumes during the quarter by
an estimated 289 boepd.
Recently, Abraxas has been selling virtually all of the
Company’s produced gas in the Bakken and gas processing constraints
in the Permian have partially abated. Moreover, Abraxas’ Bakken
well performance continues to exceed expectations. With three
additional Bakken wells now ready for completion, Abraxas
reiterates the Company’s 2015 production guidance of 6,500-7,000
boepd. Abraxas also reiterates that the Company forecasts
production of over 7,000 boepd in 2016 and 2017 by maintaining a
one rig Bakken program, which requires approximately $50-$60
million/year in capital expenditures.
Bob Watson, President and CEO of Abraxas, commented, “As
expected and previously guided, second quarter production dipped
with the downtime associated with offset fracture stimulations and
gas processing constraints in the Bakken and Permian. These issues
have abated and we expect they will continue to improve with third
party infrastructure expansion in the fourth quarter of this
year.”
“We remain very pleased with the consistent and above average
Bakken well performance we continue to experience. Additionally,
the early results from the second bench Three Forks test we
participated in are very encouraging and have the potential to
provide even more inventory at North Fork and Lillibridge. With
drill and complete costs continuing to trend down, the economics of
our Bakken development continue to positively surprise.”
(1) The production rates for each well do not
include the impact of natural gas liquids and shrinkage at the
processing plant and include flared gas.
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/20150728006765/en/
Abraxas Petroleum CorporationGeoffrey King, 210-490-4788Vice
President – Chief Financial
Officergking@abraxaspetroleum.comwww.abraxaspetroleum.com