Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to provide the following operational update.
Eagle Ford Shale
In McMullen County, the Cobra B 1H averaged 592 boepd (95% oil) on a restricted choke over its first 30 days of production. The Mustang 1H was successfully completed with a 19 stage completion in mid-December and is currently flowing to sales at rates above the Company’s in-house type curve. The Corvette C 1H reached TD at 15,049 feet in under 8 drilling days and is scheduled to be completed in mid-January. Abraxas recently spudded the Gran Torino A 1H and is currently drilling the curve at 9,600 feet. Abraxas owns a 25% working interest in the Cobra B 1H and Corvette C 1H and an 18.75% working interest in the Mustang 1H and Gran Torino A 1H.
Drilling continues on the Company’s Lillibridge East PAD with intermediate casing set on the 1H and 2H. The curve is currently being built on the Lillibridge 3H after which the rig will move to the 4H. Abraxas owns an approximately 37% working interest in the Lillibridge PAD. The expected mid-December completion of the Raven 2H has been delayed by the discovery of a third party downhole equipment failure, which required remediation work. Remediation work is expected to be completed in the near future with a revised stimulation date set for late January. The Ravin 3H recently experienced similar mechanical completion issues to the Ravin 2H. Remediation work will begin on the Ravin 3H post the completion of the Ravin 2H with an expected stimulation date in mid-February. Abraxas owns a 49% working interest in both the Ravin 2H and 3H.
Bob Watson, President and CEO of Abraxas, commented, “Although we are disappointed with the completion delays in the Bakken, operations continue to perform exceptionally well at Abraxas with well results and efficiency gains in our Bakken and Eagle Ford drilling programs consistently above expectations. We now enter 2013 anticipating a strong and immediate production boost from our forthcoming Bakken and Eagle Ford completions.”
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.