Abraxas Provides Operational, Leasehold, and Corporate Presentation Update
August 27 2018 - 5:00PM
Business Wire
Abraxas Petroleum Corporation (“Abraxas” or the “Company”)
(NASDAQ: AXAS) today provided operational, leasehold and corporate
presentation update.
As reported on the Q2 earnings call, Abraxas owns 9,780 net
acres in the Southern Delaware Basin of West Texas. This excludes
approximately 2,200 acres of perpetual mineral acres near the
Alpine High area in Pecos County. We have closed and are in various
stages of due diligence on several additional transactions that
will likely increase our total net acreage footprint to over 10,500
net acres. Our recent transactions have been consummated at
considerably less cost per acre than other recent transactions
reported by others in the area. In total, they can be characterized
as consolidating our acreage into contiguous operated blocks with
high working interests. Concurrent with this release, we have
released a new corporate presentation which includes a map of our
current acreage position in Ward County. After detailed geologic
interpretation of our acreage, we have concluded our existing
acreage contains approximately 361 gross future locations for
5,000’ laterals that we would consider highly prospective from our
drilling operations as well as from offset operator results on
1,320’ spacing. This number would approximately double if optimum
spacing is determined to be 660’ between wells in the same zone.
This future location count considers as many as 6 landing zones,
not all of which are considered currently prospective on all of our
current acreage. Approximately 32% of our locations for 5,000’
laterals could be combined for future 10,000’ laterals should
conditions warrant. Approximately 91% of our future locations would
be operated.
On our four well Caprito 99 pad, we are testing spacing of 660’
between wells in the same zone, as well as parent child
relationships between the new wells and a well that has been on
production approximately two years. After our conservative flowback
protocol, all four wells appear to have reached peak producing
rates approximately 50 days from producing first oil. For the last
30 days, the two wells (Wolfcamp A-1 and Wolfcamp A-2) 1,320’ from
the older producer have averaged 908 barrels of oil equivalent per
day (two-stream, 82% oil). The two wells located 660’ from the
older producer, also in the Wolfcamp A-1 and Wolfcamp A-2, have
averaged 604 barrels of oil equivalent (two-stream, 85% oil). The
parent child relationship is obvious, but it is too early in the
life of the new wells to quantify; however, we are still evaluating
data to determine the relationship, if any, between the new wells
that are 660’ apart in the same zone with approximately 150’
vertical separation between the Wolfcamp A-1 and A-2. All four
wells are producing above our type curve for 5,000’ laterals in
both zones. The lateral lengths on all four new wells approximates
4,800’. Abraxas owns a 57.8% working interest in this pad.
Also in Ward County, the two well Greasewood pad with 4,800’
laterals in the Wolfcamp A-1 and Wolfcamp A-2, has started
producing oil after flowback started approximately two weeks ago.
Abraxas owns a 100% working interest in this pad.
Still in Ward County, the frac date for the two well Mesquite
pad has been moved up to start around September 10. Abraxas owns a
73% working interest in these 4,800’ laterals in 3rd Bone Spring
Shale and 3rd Bone Spring Sandstone.
Our rig is currently drilling below 6,000’ on our Pecan 47 well,
a scheduled 4,800’ lateral in the Wolfcamp A-1. Abraxas owns a 100%
interest in this well. The rig is scheduled to move to our two well
Creosote 86 pad for 4,800’ laterals in the Wolfcamp A-1 and
Wolfcamp A-2. Abraxas currently owns a 100% working interest in
this pad.
In North Dakota, the three well Yellowstone NE Central pad with
two wells completed in the Three Forks and one in the Middle
Bakken, achieved an average 30 day rate of ~1,500 barrels of oil
per day (two-stream, 74% oil) per well, significantly above our
area type curve for each zone. Abraxas owns a 51.6% working
interest in this pad. The four well Lillibridge NE pad with two
wells in each, the Middle Bakken and Three Forks, achieved an
average 30-day rate of ~900 barrels of oil per day (two-stream, 76%
oil). This average is above our type curve, which we consider
satisfactory given that these were in-fill wells to parent wells
that have been on production approximately five years.
Additionally, the parent wells achieved a significant boost in
production due to the offset child fracs. Abraxas owns an
approximate 27% working interest in this pad.
The four well Ravin NE Central pad is scheduled to commence frac
operations in mid-September, immediately followed by the four well
Ravin NE pad on which the Company owned drilling rig, Raven Rig #1,
is finishing the drilling of the third of four laterals. Abraxas
owns an approximate average 47% working interest in these eight
wells. The rig is scheduled to move to the four well, Lillibridge
NW Central pad next.
Bob Watson, President and CEO of Abraxas commented, “With
current production in excess of 11,000 barrels of oil equivalent
per day and all new wells scheduled to commence production over the
next four months, we remain confident in our year-end guidance of
average production between 10,000 and 12,000 barrels of oil
equivalent per day.”
Abraxas Petroleum Corporation is a San
Antonio based crude oil and natural gas exploration and
production company with operations across the Permian
Basin, Rocky Mountain, 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/20180827005580/en/
Abraxas Petroleum CorporationSteven P. Harris,
210-490-4788Director of Finance and Capital
Marketssharris@abraxaspetroleum.comwww.abraxaspetroleum.com
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