October 3, 2019 - 12:30 PM EDT
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Abraxas Announces Agreements to Sell Non-Core Assets, Provides Operational Update, and Provides Third Quarter 2019 Conference Call Information

SAN ANTONIO

Abraxas Petroleum Corporation (“Abraxas” or the “Company”) (NASDAQ:AXAS) today announced the execution of definitive agreements on two non-core asset sales in the aggregate totaling approximately $7.9 million. Both transactions are subject to certain due diligence and closing conditions, but are intended to close within the next 45 days. One sale represents all of the Company’s remaining South Texas assets, while the other is a non-operated acreage position in Reeves County, West Texas. The combined assets produced on average approximately 310 barrels of oil equivalent during August, 49 percent crude oil.

Operational Update

In Ward County, Texas, the two well Woodberry Pad, in which the Company owns a 100 percent working interest has produced approximately 72,000 barrels of oil and 85 million cubic feet of gas over the first 66 days of production. One well is in the Wolfcamp A-1 while the other is in the Lower Third Bone Spring formation. Both wells are producing from approximate 4800 foot laterals and were fracked with 30 and 32 stages, respectively.

Also, in Ward County, Texas, frac jobs on the two well Greasewood NE pad should be completed in the next several days with flowback to begin shortly thereafter. Abraxas owns a 100 percent interest in this two-well pad with one 4800 foot lateral in the Wolfcamp A-1 and the other 4800 foot lateral in the Wolfcamp B. Each well is being fracked with 32 stages.

Drilling operations in the Delaware Basin have been suspended with three commitment wells to be drilled in 2020. Two of these wells will be owned 100 percent by Abraxas, while the third will be approximately 50 percent owned by Abraxas.

In McKenzie County, North Dakota, drilling operations on the six well Jore Federal Extension pad have been successfully completed, all with two mile laterals, three in the Middle Bakken, two in the Three Forks Upper Bench and one in the Three Forks Second Bench. As winter weather has already arrived in North Dakota, completion of these wells in which Abraxas owns an approximate 90 percent interest, will commence upon the arrival of warm weather next spring.

The Company owned drilling rig, Raven Rig #1, is down undergoing fifth year required maintenance. Upon completion, a decision will be made about the timing of the drilling program for the remaining 13 wells.

Abraxas will host its third quarter 2019 earnings conference call on Monday, November 11, 2019 at 2 PM Central Time (3 PM Eastern Time). Abraxas plans to announce third quarter 2019 operating and financial results after the market close on Thursday, November 7, 2019.

The conference call can be accessed by dialing 844.347.1028 and entering conference code 4529436. A live webcast of the conference call can be accessed under the “Investor Relations” portion of the Company’s website at www.abraxaspetroleum.com. If you are unable to participate in the live conference call, a replay will be available through December 11, 2019 and can be accessed by dialing 855.859.2056 and entering conference code 4529436.

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 States.

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.

Steve Harris/Vice President – Chief Financial Officer
Telephone 210.490.4788
[email protected]
www.abraxaspetroleum.com


Source: Business Wire (October 3, 2019 - 12:30 PM EDT)

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