April 3, 2014 at 5:33 PM EDT
SAN ANTONIO--(BUSINESS WIRE)--Apr. 3, 2014--
Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to provide the
following operational and divestiture update and announce an upcoming
As previously announced, at Abraxas’ Jourdanton prospect in Atascosa
County, Texas, the Blue Eyes 1H averaged 527 boepd (494 barrels of oil
per day, 194 mcf of natural gas per day) (1) over the well’s
highest 30 full days of production. Over the Blue Eye’s first sixty and
ninety days of production, the well averaged 466 boepd (439 barrels of
oil per day, 164 mcf of natural gas per day) (1) and 460
boepd (432 barrels of oil per day, 168 mcf of natural gas per day),
respectively (1). Also at Jourdanton, Abraxas completed the
Snake Eyes 1H with an 18 stage completion and the well has been flowing
to sales at very encouraging rates. Abraxas recently drilled the Spanish
Eyes 1H to a total depth of 12,346 feet and the well is scheduled to be
fracture stimulated next week. The company is currently drilling its
fourth well at Jourdanton, the Eagle Eyes 1H at 7,182 feet. Abraxas owns
a 100% working interest across the Jourdanton prospect.
At Abraxas’ Cave prospect, in McMullen County, Texas, the Dutch 2H
averaged 1,093 boepd (924 barrels of oil per day, 1,012 mcf of natural
gas per day) (1) over the well’s first 30 full days of
production. Abraxas holds a 100% working interest in the Dutch 2H.
Immediately following the drilling of the Eagle Eyes 1H at Jourdanton,
Abraxas will drill the offsetting Dutch 1H. The drilling of the Dutch 1H
will require shutting in the Dutch 2H for approximately 60 days.
Following the completion of the Dutch 1H, both wells will return to
production. The shut in will not impact previously issued guidance.
At Abraxas’ Dilworth East prospect, in McMullen County, Texas, the
company plans to complete the R. Henry 2H with a 19 stage fracture
stimulation in May when gas takeaway is available at the lease. Abraxas
holds a 100% working interest in the R. Henry 2H.
In McKenzie County, North Dakota, the Jore 1H, 2H and 4H are scheduled
to be fracture stimulated following the Spanish Eyes 1H at Jourdanton.
On Abraxas’ first Middle Bakken downspacing test, Raven Rig #1
successfully drilled and cased the surface and intermediate sections of
the Ravin 6H and Ravin 7H. The company is now drilling the intermediate
sections of the Ravin 5H, which will be followed by the intermediate
section of the Ravin 4H. Abraxas owns a working interest of
approximately 76% and 51% in the Jore and Ravin West pads, respectively.
Abraxas recently reached an agreement to sell a non-core Permian Basin
property for net proceeds of $2.5 million. The asset sold produced 39
boepd (22 barrels of oil per day, 100 mcf of natural gas per day) net to
Bob Watson, President and CEO of Abraxas, will be presenting at IPAA
OGIS New York at 9:10 AM ET on Monday, April 7, 2014. A live webcast of
the presentation will be available on the Abraxas website and at http://www.investorcalendar.com/CEPage.asp?ID=172381.
Bob Watson, President and CEO of Abraxas, commented, “The productivity
of the Dutch 2H meaningfully surpassed our expectations, and we recently
elected to drill the Dutch 1H to minimize operational impacts and fully
develop the two well pad. We will still have another pad in inventory to
drill at our Cave Prospect, the Dutch 3H and Dutch 4H. At Jourdanton,
the Blue Eyes 1H continues to exhibit an encouraging production profile
as evidenced by the impressive 90 day average production rate.
“In the Bakken, weather has abated and we plan to be on location in the
coming weeks to frac our three well Jore pad. Drilling continues to run
quite smoothly on the Ravin pad. Success on this initial downspacing
test obviously carries with it significant reserve and inventory
implications for the company.
“Next Monday, we will be presenting at IPAA OGIS New York. Our
presentation outlines the significant value impact continued success in
the Eagle Ford and downspacing in the Bakken can potentially have on
Abraxas. We hope these disclosures allow our shareholder base to better
understand the upside and value we see here at Abraxas.”
(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
Source: Abraxas Petroleum Corporation
Abraxas Petroleum Corporation
Geoffrey King, 210-490-4788
President – Chief Financial Officer