Abraxas Provides Operational, Financial And Divestiture Update; Addresses 2016 And 2017 Guidance And Capital Budget
Abraxas Petroleum Corporation ("Abraxas" or the "Company") (NASDAQ:AXAS) today provided the following operational, financial and divestiture update and addressed the Company's 2016 and 2017 guidance and capital budget.
Abraxas Petroleum Corporation ("Abraxas" or the "Company") (NASDAQ:AXAS) today provided the following operational, financial and divestiture update and addressed the Company's 2016 and 2017 guidance and capital budget. Divestiture Update Abraxas recently signed a definitive agreement to divest the Company's Brooks Draw assets in the Powder River Basin assets for approximately $11.3 million subject to standard closing conditions and purchase price adjustments. The assets sold consist of approximately 14,229 net acres and produced approximately 28 barrels of oil per day on average for the quarter ended September 30, 2016. The effective date of this transaction is October 1, 2016. Closing is scheduled for December 15, 2016. Upon closing, proceeds will be used to further reduce borrowings on the Company's credit facility. Abraxas continues to market the Company's remaining assets in the Powder River Basin. In the Permian Basin, Abraxas now expects to close the previously announced sale of Hudgins Ranch (Pecos County, Texas) in December, 2016. Williston Basin At Abraxas' North Fork prospect, in McKenzie County, North Dakota, the Stenehjem 10H, 12H and 14H wells targeting the Three Forks averaged 1,059 boepd (786 barrels of oil per day, 1,642 mcf of natural gas per day) (1) over their first 30 days of production. The Stenehjem 11H, 13H and 15H wells targeting the Middle Bakken averaged 1,226 boepd (915 barrels of oil per day, 1,864 mcf of natural gas per day) (1) over their first 30 days of production. Abraxas owns a working interest of approximately 78% in Stenehjem 10H-15H. Austin Chalk At Abraxas' Jourdanton prospect in Atascosa County, Texas, the Bulls Eye 101H is currently on production. Although the well has not achieved the anticipated initial production rate to date, it did achieve reasonable production rates and has shown a very stable production profile. The well continues to clean up having recovered approximately 40% of its load water and over 15,000 boe to date. Abraxas will update the market with more specific numbers once volumes stabilize. Abraxas owns a 100% working interest in the Bulls Eye 101H.