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Abraxas Provides Operational and Financial Update

  Abraxas Provides Operational and Financial Update

Business Wire

SAN ANTONIO -- September 27, 2013

Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to provide the
following operational and financial update.

Williston Basin

In McKenzie County, North Dakota, Abraxas recently reached TD on the lateral
of the Lillibridge 5H at 20,660 feet. Drilling operations on the Lillibridge
West pad are now effectively complete approximately one month ahead of
schedule. Completion of the four well pad is scheduled for late October.
Abraxas owns a working interest of approximately 34% in both the Lillibridge
East and West pads.

After reaming and casing the lateral of the Lillibridge 5H, Abraxas’
company-owned drilling rig, the Raven 1, will mobilize to the Jore pad to
drill the Jore 1H, Jore 2H, and Jore 4H. Abraxas holds a 76% working interest
in the Jore pad.

Eagle Ford Shale

In McMullen County, Texas, the Gran Torino A 11H averaged 466 boepd (388
barrels of oil per day, 465 mcf of natural gas per day) over the well’s first
30 full days of production. The recently completed Sting Ray A 8H appears to
be an exceptional producer, averaging 1,233 boepd (1,104 barrels of oil per
day, 773 mcf of natural gas per day) over the most recent five days of
production. The production rates for each well do not include the impact of
natural gas liquids and shrinkage at the processing plant. The company
recently reached TD on the Camaro A 1H. Abraxas owns an 18.75% working
interest in the Sting Ray A 8H and Gran Torino A 11H and a 25% working
interest in the Camaro A 1H.

In Atascosa County, Abraxas is currently rigging up on the Blue Eyes 1H at the
company’s Jourdanton prospect. Abraxas holds a 100% working interest in the
Blue Eyes 1H.

Permian Basin

In Nolan County, Texas, Abraxas recently completed and began the flowback of
the first stimulated Strawn horizontal on its Spires Ranch prospect, the
Spires 129 2H. As this is the first Strawn horizontal well testing the
efficacy of a stimulation, Abraxas will provide thirty day stabilized flow
rates when available.

Financial Update

Abraxas recently completed its redetermination process with the company’s bank
group. Abraxas’ facility is now governed by a $147 million borrowing base, an
increase of $4 million over the previously revised $143 million borrowing
base. Importantly, this borrowing base is fully conforming and contains no
maturing or stretch features.

As part of the agreement, Abraxas entered into the following incremental hedge
positions:

ADDITIONAL HEDGE  
LLS                  BOPM    Price
CAL2013^(1)          8,500     $106.75
CAL2014              3,000     $101.26

(1) 2013 hedges effective October – December 2013

Bob Watson, President and CEO of Abraxas, commented, “We could not be more
proud of our operating team, which continues to execute and drive efficiencies
in the Eagle Ford and now the Bakken. We will now mobilize both our Bakken and
Eagle Ford rigs to higher working interest areas to further accelerate growth.
We look forward to updating the market shortly with the results of these
efforts.”

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 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.

Contact:

Abraxas Petroleum Corporation
Geoffrey King, 210-490-4788
Vice President – Chief Financial Officer
gking@abraxaspetroleum.com
www.abraxaspetroleum.com
 
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