Abraxas Petroleum Corporation is pleased to provide the following operational and guidance update as well as announce an upcoming presentation.
At Abraxas’ Jourdanton prospect in Atascosa County, Texas, the Snake Eyes 1H averaged 759 boepd (701 barrels of oil per day, 343 mcf of natural gas per day) (1) over the well’s most recent 30 days of production. The Spanish Eyes 1H averaged 203 boepd (190 barrels of oil per day, 81 mcf of natural gas per day) (1) over the well’s most recent 30 days of production. Since being placed on submersible pump, the Spanish Eyes averaged 321 boepd (301 barrels of oil per day, 114 mcf of natural gas per day) (1) over the following nine full production days. The Eagle Eyes 1H averaged 221 boepd (204 barrels of oil per day, 102 mcf of natural gas per day) (1) over the well’s most recent 21 days of production. Since being placed on submersible pump, the Eagle Eyes averaged 334 boepd (310 barrels of oil per day, 146 mcf of natural gas per day) (1) over the following eight full production days. On the company’s first two well pad at Jourdanton, Abraxas is currently drilling the lateral of the Ribeye 1H below 9,600 feet. Next, the company will drill the curve and lateral section of the Ribeye 2H before zipper fracking both wells at the same time. These wells also represent the company’s first long lateral (7,000 foot) wells at Jourdanton. Abraxas owns a 100% working interest across the Jourdanton prospect.
At Abraxas’ Cave prospect, in McMullen County, Texas, the company is currently completing the Dutch 1H. Following the completion, the Dutch 1H, and currently shut-in Dutch 2H, will be turned to production. Abraxas holds a 100% working interest in the Dutch 1H and 2H.
At Abraxas’ Dilworth East prospect, in McMullen County, Texas, the company recently completed the R. Henry 2H with a 19 stage fracture stimulation. The well is currently shut-in awaiting gas takeaway, which is expected to be in place mid-June. Abraxas holds a 100% working interest in the R. Henry 2H.
In McKenzie County, North Dakota, the Jore 1H, 2H and 4H were successfully completed with a combined 99 stages and are currently flowing to sales at encouraging rates. On the Ravin West pad, Abraxas cased the laterals of the Ravin 4H and Ravin 5H. Abraxas recently reached TD on the lateral of the Ravin 6H at 20,793 feet. After casing the lateral of the Ravin 6H, the company will drill the lateral of the Ravin 7H. Abraxas owns a working interest of approximately 76% and 51% in the Jore and Ravin West pads, respectively.
Abraxas’ board of directors recently elected to increase our 2014 capital budget to $160 million. The company intends to use the increased amount ($35 million) to drill three incremental Eagle Ford wells: the Ribeye 1H, the Dutch 3H and the Dutch 4H. We believe that the increased capital program will be funded by increased cash flows from operations and borrowings under the company's credit facility. The borrowing base for the company’s credit facility is currently undergoing its annual redetermination, and, based on our independent reserve report and drilling results, we believe that our lenders will increase this amount.
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