September 24, 2018 at 4:38 PM EDT
SAN ANTONIO--(BUSINESS WIRE)--Sep. 24, 2018--
Abraxas Petroleum Corporation (“Abraxas” or the “Company”) (NASDAQ:AXAS)
provides the following operational update.
Delaware Basin Acreage Update
Due to continued successful leasing efforts, Abraxas now owns
approximately 10,700 net acres in the Southern Delaware Basin of West
Texas prospective for Wolfcamp and Bone Springs development. This
acreage total excludes approximately 2,200 acres of perpetual mineral
acres near the Alpine High area in Pecos County. Our recent transactions
continue to be consummated at attractive costs per acre relative to
recent transactions reported by others in the area. In total, they can
be characterized as consolidating our acreage into contiguous operated
blocks with high working interests. After detailed geologic
interpretation of our acreage, we have concluded that our existing
acreage contains approximately 361 gross and 272 net future locations
for 5,000’ laterals that we would consider highly prospective from our
development results or from offset operator results on 1,320’ spacing.
This number would approximately double if optimum spacing is determined
to be 660’ between wells in the same zone. This future location count
considers as many as 6 landing zones, not all of which are considered
currently prospective on our acreage. Approximately 32% of our locations
for 5,000’ laterals could be combined for future 10,000’ laterals should
conditions warrant. Approximately 95% of our leasehold is operated, and
88% is HBP.
West Texas (Delaware Basin Update)
In Ward County, the two well Greasewood pad with 4,800’ laterals in the
Wolfcamp A-1 and Wolfcamp A-2, has started producing oil after flowback
started approximately a month ago. With a 7-day average of ~1,100 boe/d
per well (two-stream, 83% oil) we are encouraged by the initial results.
Abraxas owns a 100% working interest in this pad.
Also in Ward County, fraccing is complete on the two well Mesquite pad.
First production is expected within the next 14-18 days. Abraxas owns a
73% working interest in these 4,800’ laterals in 3rd Bone Spring
Shale and 3rd Bone Spring Sandstone.
Our rig is currently drilling to TD in the lateral section on our Pecan
47 well, a scheduled 4,800’ lateral in the Wolfcamp A-1. The subsequent
frac is expected in mid-November and to be on production mid-December.
Abraxas owns a 100% interest in this well. The rig is scheduled next to
move to our two well Creosote 86 pad for 4,800’ laterals in the Wolfcamp
A-1 and Wolfcamp A-2. Abraxas currently owns a ~70% working interest in
the Creosote pad.
North Dakota (Williston Basin Update)
In North Dakota, our Yellowstone Unit continues to outperform internal
projections. The Yellowstone 7H has produced over 100,000 gross barrels
of oil in its first 87 days and is currently producing ~1,600 boe/d
(two-stream, 80% oil). Abraxas owns a ~52% working interest in this
well. On the newly completed Lillibridge SE pad, the Lillibridge 12H has
also outperformed projections with production in excess of 63,000 boe in
its first 60 days (two-stream, 80% oil). Our increased frac efficiency
and enhanced completion design has greatly contributed to the
probability of this down space test. Due to this success, Abraxas plans
to spud the next 4 well Lillibridge pad with its Ravin Rig #1 within the
next few weeks. Upon completion, the 1,320 gross acre unit will have 16
producing wells. One of which, the Lillibridge 1H, has already produced
550 Mboe and continues to see uplift from the directly offset
completions. Abraxas owns a ~27.5% working interest in the Lillibridge
Our 10 well Stenehjem pad has been shut in for offset frac protection
from an industry competitor. It is anticipated that the shut-in period
will last approximately 3 weeks. During this period we will actively
frac-protect our well bores with a design pumping program. We have seen
field wide success with this strategy and expect production rates to
return quickly. Abraxas owns a ~77.5% working interest in the Stenehjem
On the Ravin Central and Ravin East pads we have 8 wells ready for frac.
Our original frac date of September 15th has shifted to September 24th.
We anticipate having all 8 wells producing around the first of December.
During this period we will have 8 offset wells in the same unit shut in.
We again plan to utilize our active frac-protect program on these shut
in wells. Abraxas owns a ~52.5% working interest in the Ravin Unit.
We are implementing a new frac design on these upcoming wells that will
increase the number of stages to 60 from 41. Our research of area
production results shows production uplift with this tighter stage
spacing. We also believe this spacing will help minimize the effect of
child fracs on the local parents.
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 South Texas regions of the United
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
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Source: Abraxas Petroleum Corporation
Abraxas Petroleum Corporation
Steven P. Harris, 210-490-4788
of Finance and Capital Markets