Divestiture UpdateAbraxas recently closed and/or signed a Purchase and Sale Agreement on several non-core Permian Basin and Gulf Coast properties for combined proceeds of $2.6 million. The assets sold produced a combined 56 boepd (83% natural gas) of production. Guidance Update At Abraxas’ March 2014 board meeting, the Board of Directors approved an increase to Abraxas’ 2014 CAPEX budget to $125.0 million. The increase in 2014 CAPEX will go directly to drilling two incremental wells and acquiring additional leasehold in the Eagle Ford. In connection with this increase in CAPEX and compensating for recent asset sales, Abraxas is raising the company’s 2014 production guidance from 4,900-5,100 boepd to 5,200-5,300 boepd. Abraxas is also providing the following additional guidance for the first quarter and full year 2014.
|% Natural Gas||30%||27%|
|Production Tax (% Rev)||9.0%||9.5%||9.0%||9.5%|
|Cash G&A ($mm) (3)||$2.3||$2.5||$11.5||$12.0|
(1) The production rates for each well do not include the impact of natural gas liquids and shrinkage at the processing plant and include flared gas.(2) Excluding building mortgage and rig loan which are secured by the building and rig, respectively. Using definition of EBITDA per bank loan agreement (excludes rig EBITDA). Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas exploration and production company with operations across the Rocky Mountain, 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.