Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to provide the following operational and divestiture update and announce an upcoming presentation. Eagle Ford As previously announced, at Abraxas’ Jourdanton prospect in Atascosa County, Texas, the Blue Eyes 1H averaged 527 boepd (494 barrels of oil per day, 194 mcf of natural gas per day) (1) over the well’s highest 30 full days of production. Over the Blue Eye’s first sixty and ninety days of production, the well averaged 466 boepd (439 barrels of oil per day, 164 mcf of natural gas per day) (1) and 460 boepd (432 barrels of oil per day, 168 mcf of natural gas per day), respectively (1). Also at Jourdanton, Abraxas completed the Snake Eyes 1H with an 18 stage completion and the well has been flowing to sales at very encouraging rates. Abraxas recently drilled the Spanish Eyes 1H to a total depth of 12,346 feet and the well is scheduled to be fracture stimulated next week. The company is currently drilling its fourth well at Jourdanton, the Eagle Eyes 1H at 7,182 feet. Abraxas owns a 100% working interest across the Jourdanton prospect. At Abraxas’ Cave prospect, in McMullen County, Texas, the Dutch 2H averaged 1,093 boepd (924 barrels of oil per day, 1,012 mcf of natural gas per day) (1) over the well’s first 30 full days of production. Abraxas holds a 100% working interest in the Dutch 2H. Immediately following the drilling of the Eagle Eyes 1H at Jourdanton, Abraxas will drill the offsetting Dutch 1H. The drilling of the Dutch 1H will require shutting in the Dutch 2H for approximately 60 days. Following the completion of the Dutch 1H, both wells will return to production. The shut in will not impact previously issued guidance. At Abraxas’ Dilworth East prospect, in McMullen County, Texas, the company plans to complete the R. Henry 2H with a 19 stage fracture stimulation in May when gas takeaway is available at the lease. Abraxas holds a 100% working interest in the R. Henry 2H.
Williston BasinIn McKenzie County, North Dakota, the Jore 1H, 2H and 4H are scheduled to be fracture stimulated following the Spanish Eyes 1H at Jourdanton. On Abraxas’ first Middle Bakken downspacing test, Raven Rig #1 successfully drilled and cased the surface and intermediate sections of the Ravin 6H and Ravin 7H. The company is now drilling the intermediate sections of the Ravin 5H, which will be followed by the intermediate section of the Ravin 4H. Abraxas owns a working interest of approximately 76% and 51% in the Jore and Ravin West pads, respectively. A&D Update Abraxas recently reached an agreement to sell a non-core Permian Basin property for net proceeds of $2.5 million. The asset sold produced 39 boepd (22 barrels of oil per day, 100 mcf of natural gas per day) net to Abraxas. Upcoming Presentation Bob Watson, President and CEO of Abraxas, will be presenting at IPAA OGIS New York at 9:10 AM ET on Monday, April 7, 2014. A live webcast of the presentation will be available on the Abraxas website and at http://www.investorcalendar.com/CEPage.asp?ID=172381. Bob Watson, President and CEO of Abraxas, commented, “The productivity of the Dutch 2H meaningfully surpassed our expectations, and we recently elected to drill the Dutch 1H to minimize operational impacts and fully develop the two well pad. We will still have another pad in inventory to drill at our Cave Prospect, the Dutch 3H and Dutch 4H. At Jourdanton, the Blue Eyes 1H continues to exhibit an encouraging production profile as evidenced by the impressive 90 day average production rate. “In the Bakken, weather has abated and we plan to be on location in the coming weeks to frac our three well Jore pad. Drilling continues to run quite smoothly on the Ravin pad. Success on this initial downspacing test obviously carries with it significant reserve and inventory implications for the company.
“Next Monday, we will be presenting at IPAA OGIS New York. Our presentation outlines the significant value impact continued success in the Eagle Ford and downspacing in the Bakken can potentially have on Abraxas. We hope these disclosures allow our shareholder base to better understand the upside and value we see here at Abraxas.”(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. 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.