Abraxas Petroleum Issues an Operations Update
December 20 2018 - 4:05PM
Business Wire
Abraxas Petroleum Corporation (“Abraxas” or the “Company”)
(NASDAQ:AXAS) provides the following operational update.
Williston Basin, North Dakota
In McKenzie County North Dakota, our four well Ravin NE Pad has
been on production for 25 days and has averaged 1,182 barrels of
oil and 2.1 million cubic feet of gas per day (1,532 barrels of oil
equivalent per day, BOEPD) per well. Production is currently being
restricted due to an aberration in the North Dakota crude oil
market where December differentials are approximately $21 per
barrel. However, we have been successful in locking in January
differentials at less than $9 per barrel. The latest two Abraxas
pads are not subject to our existing crude oil market agreement,
which calls for a fixed differential of less than $5 per barrel
through February 2019, and therefore are subject to spot market
differentials. The gas from this pad is currently being flared due
to third party delays in getting connected to a gas sales line.
Abraxas owns an approximate 55% working interest in two of these
wells and an approximate 29% percent working interest in the other
two.
On the four well Ravin North Central Pad, two of the wells have
been on production for 30 days and have averaged 606 barrels of oil
and 1.2 million cubic feet of gas per day (806 BOEPD) per well.
Production from these two wells has also been restricted due to the
differential issue discussed above. A gas sales line has been in
place on this pad from the start, which has allowed gas sales with
minimal flaring due to high line pressure. Completion work
continues on the remaining two wells which has been complicated by
stuck coil tubing in both wells. Fishing the stuck pipe has been
successful in one well and has recently commenced on the second. We
expect to have both wells on production early in the new year. This
pad was drilled close to existing wells that have been on
production for approximately 5 years, therefore we expect reduced
rates, although still above our type curve. Abraxas owns an
approximate 55.4% interest in the four wells on this pad.
Raven Rig #1 has successfully completed the drilling of four
wells on the Lillibridge NW Pad to total depths in excess of 21,000
feet. Abraxas owns an approximate 25% interest in this pad. The rig
will shut down for several weeks over the holidays for some routine
maintenance and will then spud the five well Jore Federal East
Extension Pad. Abraxas will own an approximate 76% interest on this
pad. The Lillibridge and Jore wells will not be completed until
next summer, and only if conditions warrant.
Delaware Basin, West Texas
In the Delaware Basin of West Texas, our one well Pecan 47 pad
in Ward County has begun to cut oil and is making appreciable
amounts of oil and gas under our conservative flow back regime. We
expect it could be another 45 to 60 days before this well achieves
peak rate. Abraxas owns a 100% interest in this well.
Drilling has been successfully completed on our two well
Creosote Pad, with both wells having slightly less than 5,000’
laterals. Abraxas owns an approximate 80% interest in these two
wells that are scheduled to be completed in early February. The rig
will be moving soon to drill one well on our Hackberry Pad in
Winkler County.
Bob Watson, President, commented, “We continue to produce
results above our expectations but with the recent downturn in oil
prices our focus going forward will emphasize capital efficiency
over growth, even more than we have done in the past. We intend to
issue a revised capital budget for 2019 early in the new year that
will allow us to continue to operate within projected cash flow,
but with flexibility to accelerate or decelerate capital spending
should conditions warrant.”
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 South Texas 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: https://www.businesswire.com/news/home/20181220005885/en/
Steven P. Harris – Vice President – Chief Financial
Officer210.490.4788sharris@abraxaspetroleum.comwww.abraxaspetroleum.com
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