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Abraxas Provides Operational and Acquisition Update

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SAN ANTONIO--(BUSINESS WIRE)--Jan. 6, 2014-- Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to provide the following operational and acquisition update.

Williston Basin

In McKenzie County, North Dakota, the Lillibridge 5H, producing from the Middle Bakken, averaged 1,049 boepd (861 barrels of oil per day, 1,127 mcf of natural gas per day) over the well’s first 30 full days of production(1). The Lillibridge 6H, producing from the Three Forks, averaged 921 boepd (762 barrels of oil per day, 954 mcf of natural gas per day) over the well’s first 30 full days of production(1). The Lillibridge 7H, producing from the Middle Bakken, averaged 1,005 boepd (840 barrels of oil per day, 989 mcf of natural gas per day) over the well’s first 30 full days of production(1). The Lillibridge 8H, producing from the Three Forks, averaged 1,049 boepd (902 barrels of oil per day, 883 mcf of natural gas per day over the well’s first 25 full days of production(1). Each of the four Lillibridge wells was constrained on a 16 to 20/64th choke.

On the Jore Federal East pad, lateral casing has been set in the Middle Bakken on the Jore 2H and Jore 4H to a depth of 20,989 feet and 20,895, respectively. Raven Rig #1 is currently walking to the Jore 1H to drill the lateral section in the Three Forks. The three Jore wells are currently scheduled to be fraced in mid-February. In the event of extreme winter weather, the fracs could be postponed until the weather abates.

Abraxas owns a working interest of approximately 34% and 76% in the Lillibridge and Jore pads, respectively.

Permian Basin

In Nolan County, Texas, the Spires Ranch 129 2H averaged 92 boepd (59 barrels of oil per day, 196 mcf of natural gas per day) over the well’s first 30 full days of production(1). Abraxas owns a 100% working interest in the Spires Ranch 129 2H.

Eagle Ford

At Abraxas’ Jourdanton prospect, in Atascosa County, Texas, the Blue Eyes 1H continues to flow to sales at encouraging rates. Thus, Abraxas recently permitted the Snake Eyes 1H, which is expected to spud in the first quarter of 2014. Abraxas owns a 100% working interest in the Blue Eyes 1H and Snake Eyes 1H.

At Abraxas’ Cave prospect, in McMullen County, Texas, the company recently cased the lateral of the Dutch 2H to a TD of 19,500 feet. The well is scheduled to be completed with approximately 38 stages in January, 2014. Abraxas holds a 100% working interest in the Dutch 2H.

Eagle Ford Acquisition

Abraxas continues to identify and transact on targeted lease blocks in its core focus areas of the Eagle Ford shale. Recently, Abraxas acquired approximately 440 net acres of leasehold in McMullen County known as Dilworth East. The company believes the acreage block can accommodate up to four 5,000 foot lateral wells. Abraxas expects to be in a position to announce further acreage acquisitions in the Eagle Ford in the near future.

Bob Watson, President and CEO of Abraxas, commented, “The Lillibridge West pad again shows the benefit of our focused development program in the Bakken. With a team oriented culture allowing our geology, drilling and completion teams to work together seamlessly toward a common goal, and with a stalwart focus on attention to detail, we continue to show superior well results.

“Given the early results of the Blue Eyes 1H, we have elected to drill the Snake Eyes 1H on the company’s Jourdanton prospect in Atascosa County, Texas. We look forward to an active development program on our 4,000+ net acre, 100% working interest lease block at Jourdanton in 2014.

“On the A&D front, Abraxas continues to execute on adding quality lease blocks in our targeted regions of the Eagle Ford as evidenced by the recent Dilworth East acquisition. The company is currently permitting its first well at Dilworth East, which it expects to spud early in the first quarter of 2014.”

(1) The production rates for each well do not include the impact of natural gas liquids and shrinkage at the processing plant and include flared gas.

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.

Source: Abraxas Petroleum Corporation

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

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