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.