Abraxas Provides Operational Update; Announces Upcoming Presentations
Dahlman Rose & Co Ultimate Oil Service and E&P Conference Capital One
Southcoast Energy Conference
SAN ANTONIO -- November 27, 2012
Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to provide the
following operational update.
On the Abraxas’ North Fork block in McKenzie County, ND, the Jore Federal
2-11-3H (76% working interest) produced 15,289 BOE (11,785 BO and 21,022 MCF
gas) over its first 30 days from the Three Forks. The well continues to flow
367 BOEPD (325 BOPD and 250 MCFPD) on a restricted choke. Additionally, the
well is expected to come in over $1mm below its originally projected AFE.
Completion operations remain ongoing at the Ravin 2H and 3H. The Ravin 2H is
estimated to be completed and flowing to sales in mid-December after which
completion activities will move to the 3H.
At Abraxas’ Lillibridge PAD at North Fork, the Company’s wholly owned drilling
rig continues to run efficiently irrespective of the inclement weather. As
mentioned in the Company’s November 12 operational update, surface casing has
been set on all four wells. Subsequent to the Company’s November 12 release,
intermediate hole and the curve have been drilled with casing set on the
Lillibridge 1H. The rig has moved and is currently drilling intermediate hole
on the Lillibridge 2H. After receiving final partner consents for the four
well PAD, Abraxas will hold an approximately 37.4% working interest across the
four Lillibridge wells.
At Abraxas’ WyCross Prospect in McMullen County, Texas, the Company
successfully completed the Cobra B 1H (25% working interest) with a 19 stage
fracture stimulation on November 24^th. The well is currently flowing to sales
on a restricted choke and the Company will furnish a 30 day IP rate when
available. The Cobra B 1H is projected to come in over $1mm below its
originally projected AFE. Furthermore, the Mustang 1H (25% working interest)
was recently drilled and pipe set to 15,004 feet with completion scheduled to
start December 10. The rig is currently rigging up on Abraxas’ third well, the
Corvette 1H (25% working interest).
Bob Watson, President and CEO of Abraxas, commented, “We remain enthused with
the productivity of the wells we continue to bring on, evidenced by the Jore
Federal 2-11-3H and Cobra B1H. Our operations in North Dakota and in the Eagle
Ford continue to run efficiently with drilling times and costs continuing to
come down. We remain focused on continuing to exploit these efficiency gains
in an effort to drive down costs while targeting a step change in production
Abraxas will be presenting at the Dahlman Rose & Co Ultimate Oil Service and
E&P Conference in New York, NY at 7:50 am EST (6:50 am CST, 4:50 am PT) on
December 3, 2012. The live audio webcast with the corresponding slide
presentation will be available on the company’s website at,
http://www.abraxaspetroleum.com, in the Investor Relations section under
Abraxas will also be presenting at the Capital One Southcoast Energy
Conference on December 4, 2012.
Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas
exploration and production company with operations across the Rocky Mountain,
Mid-Continent, Permian Basin and onshore Gulf Coast regions of the United
States and in the province of Alberta, Canada.
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.
Abraxas Petroleum Corporation
Geoffrey King, 210-490-4788
Vice President – Chief Financial Officer
Press spacebar to pause and continue. Press esc to stop.