Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to provide the following operational and financial update. Williston Basin In McKenzie County, North Dakota, Abraxas recently reached TD on the lateral of the Lillibridge 5H at 20,660 feet. Drilling operations on the Lillibridge West pad are now effectively complete approximately one month ahead of schedule. Completion of the four well pad is scheduled for late October. Abraxas owns a working interest of approximately 34% in both the Lillibridge East and West pads. After reaming and casing the lateral of the Lillibridge 5H, Abraxas’ company-owned drilling rig, the Raven 1, will mobilize to the Jore pad to drill the Jore 1H, Jore 2H, and Jore 4H. Abraxas holds a 76% working interest in the Jore pad. Eagle Ford Shale In McMullen County, Texas, the Gran Torino A 11H averaged 466 boepd (388 barrels of oil per day, 465 mcf of natural gas per day) over the well’s first 30 full days of production. The recently completed Sting Ray A 8H appears to be an exceptional producer, averaging 1,233 boepd (1,104 barrels of oil per day, 773 mcf of natural gas per day) over the most recent five days of production. The production rates for each well do not include the impact of natural gas liquids and shrinkage at the processing plant. The company recently reached TD on the Camaro A 1H. Abraxas owns an 18.75% working interest in the Sting Ray A 8H and Gran Torino A 11H and a 25% working interest in the Camaro A 1H. In Atascosa County, Abraxas is currently rigging up on the Blue Eyes 1H at the company’s Jourdanton prospect. Abraxas holds a 100% working interest in the Blue Eyes 1H. Permian Basin In Nolan County, Texas, Abraxas recently completed and began the flowback of the first stimulated Strawn horizontal on its Spires Ranch prospect, the Spires 129 2H. As this is the first Strawn horizontal well testing the efficacy of a stimulation, Abraxas will provide thirty day stabilized flow rates when available.
Financial UpdateAbraxas recently completed its redetermination process with the company’s bank group. Abraxas’ facility is now governed by a $147 million borrowing base, an increase of $4 million over the previously revised $143 million borrowing base. Importantly, this borrowing base is fully conforming and contains no maturing or stretch features. As part of the agreement, Abraxas entered into the following incremental hedge positions:
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.