Abraxas Announces Agreements to Sell Non-Core Assets, Provides Operational Update, & Provides Third Quarter 2019 Conference C...
October 03 2019 - 12:30PM
Business Wire
Abraxas Petroleum Corporation (“Abraxas” or the “Company”)
(NASDAQ:AXAS) today announced the execution of definitive
agreements on two non-core asset sales in the aggregate totaling
approximately $7.9 million. Both transactions are subject to
certain due diligence and closing conditions, but are intended to
close within the next 45 days. One sale represents all of the
Company’s remaining South Texas assets, while the other is a
non-operated acreage position in Reeves County, West Texas. The
combined assets produced on average approximately 310 barrels of
oil equivalent during August, 49 percent crude oil.
Operational Update
In Ward County, Texas, the two well Woodberry Pad, in which the
Company owns a 100 percent working interest has produced
approximately 72,000 barrels of oil and 85 million cubic feet of
gas over the first 66 days of production. One well is in the
Wolfcamp A-1 while the other is in the Lower Third Bone Spring
formation. Both wells are producing from approximate 4800 foot
laterals and were fracked with 30 and 32 stages, respectively.
Also, in Ward County, Texas, frac jobs on the two well
Greasewood NE pad should be completed in the next several days with
flowback to begin shortly thereafter. Abraxas owns a 100 percent
interest in this two-well pad with one 4800 foot lateral in the
Wolfcamp A-1 and the other 4800 foot lateral in the Wolfcamp B.
Each well is being fracked with 32 stages.
Drilling operations in the Delaware Basin have been suspended
with three commitment wells to be drilled in 2020. Two of these
wells will be owned 100 percent by Abraxas, while the third will be
approximately 50 percent owned by Abraxas.
In McKenzie County, North Dakota, drilling operations on the six
well Jore Federal Extension pad have been successfully completed,
all with two mile laterals, three in the Middle Bakken, two in the
Three Forks Upper Bench and one in the Three Forks Second Bench. As
winter weather has already arrived in North Dakota, completion of
these wells in which Abraxas owns an approximate 90 percent
interest, will commence upon the arrival of warm weather next
spring.
The Company owned drilling rig, Raven Rig #1, is down undergoing
fifth year required maintenance. Upon completion, a decision will
be made about the timing of the drilling program for the remaining
13 wells.
Abraxas will host its third quarter 2019 earnings conference
call on Monday, November 11, 2019 at 2 PM Central Time (3 PM
Eastern Time). Abraxas plans to announce third quarter 2019
operating and financial results after the market close on Thursday,
November 7, 2019.
The conference call can be accessed by dialing 844.347.1028 and
entering conference code 4529436. A live webcast of the conference
call can be accessed under the “Investor Relations” portion of the
Company’s website at www.abraxaspetroleum.com. If you are unable to
participate in the live conference call, a replay will be available
through December 11, 2019 and can be accessed by dialing
855.859.2056 and entering conference code 4529436.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191003005682/en/
Steve Harris/Vice President – Chief Financial Officer Telephone
210.490.4788 sharris@abraxaspetroleum.com
www.abraxaspetroleum.com
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