Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to provide the following operational and financial update.
Eagle Ford Shale
In McMullen County, the Mustang 1H produced an average 1,152 boepd (1,025 barrels of oil per day; 500 mcf of gas per day; 44 barrels of NGL per day) on a restricted choke over its first 30 days of production. The well continues to flow to sales at a rate of 999 boepd (847 barrels of oil per day; 914 mcf of gas per day) plus NGLs on a 22/64 ” choke. Completion crews are currently rigging up on the Corvette C 1H to complete the well with a 20 stage fracture stimulation. Abraxas recently reached TD on the Gran Torino A 1H with a fracture stimulation date anticipated in February. Abraxas today spudded the Company’s sixth well at WyCross, the Mustang 3H. Abraxas owns a 25% working interest in the Corvette C 1H and an 18.75% working interest in the Mustang 1H, Gran Torino A 1H and Mustang 3H.
Drilling continues on the Company’s Lillibridge East PAD with intermediate casing set on the 1H and 2H. Abraxas just reached TD on the curve of the Lillibridge 3H. After setting intermediate casing on the Lillibridge 3H, the rig will move to drill the curve of the Lillibridge 4H. Abraxas recently received final consents on the Lillibridge PAD and now holds an approximately 34.14% working interest across the four Lillibridge wells. The Ravin 2H and 3H are now anticipated to be completed mid-February. Abraxas owns a 49% working interest in both the Ravin 2H and 3H.
As previously announced, the approximately $22mm in asset sale proceeds in the fourth quarter were applied directly to paying down the Company’s revolver. At December 31, 2012 the company had $113 million drawn on its $150 million credit facility and approximately $575,000 in cash providing approximately $38 million in liquidity.
Bob Watson, President and CEO of Abraxas, will be presenting at the IPAA OGIS conference in Fort Lauderdale Florida on February 13, 2013 at 11:25AM EST. An updated presentation and webcast will be available at http://www.investorcalendar.com/CEPage.asp?ID=170412 and on Abraxas’ website, www.abraxaspetroleum.com.
Bob Watson, President and CEO of Abraxas, commented, “We are quite pleased with the early performance of the Mustang 1H. This is our third well in the WyCross area, and materially outperformed our previous best well the Cobra 1H. In the Bakken, we elected to complete the Ravin 2H and 3H simultaneously in February opposed to individual completions a month apart, which should lead to reasonable cost savings. We look forward to updating the market post our upcoming 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.