Abraxas Boosts Capital Spending

The company will fund bigger projects in Wyoming and Texas.
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Abraxas Petroleum (ABP) boosted its 2005 capital spending budget by $10 million, to $32 million.

The San Antonio, Texas, oil and gas company said the added funds will go to Wyoming and the Oates SW Field area in West Texas. The increase will be funded out of cash flow and availability under a credit facility.

Abraxas said that "recently announced operational results have positively impacted our total net production, which currently exceeds 21.5 MMcfepd and represents a 41% increase over second-quarter average."

"We are extremely pleased that our current net production exceeds our exit-rate guidance for the year, and we have several wells currently awaiting completion," said CEO Bob Watson. "Even though we continue to find ourselves in a tightening environment in terms of available rigs and related services, we are optimistic about our ability to achieve our expanded $32 million capital program. As these wells are successfully completed, we anticipate a continually growing production profile throughout 2005 and into 2006."

On Wednesday, Abraxas rose 39 cents to $4.98.