Message #34 From:
NewsBot Date: March 13, 2007 05:40:00 AM
ABP News Abraxas Reports Full Year 2006 Results with Increased Production, Revenue, EBITDA and Cash Flow
SAN ANTONIO--(BUSINESS WIRE)--Abraxas Petroleum Corporation (AMEX:ABP) today reported financial and operating results for the twelve months ended December 31, 2006 and provided an operational update.
Results for the year ended December 31, 2006 included:
Production of 7.7 Bcfe, a 26% increase over 2005;
Revenue of $51.7 million, a 6% increase over 2005;
EBITDA (a) of $35.0 million, a 12% increase over 2005; and
Cash flow (a) of $18.4 million, a 6% increase over 2005.
(a) See reconciliation of non-GAAP financial measures below.
Net earnings for the year ended December 31, 2006 were $1.2 million, or $0.03 per share, as compared to net earnings in 2005 of $6.3 million, or $0.16 per share, from continuing operations. Continuing operations represent financial and operating results from operations in the U.S. only as all of Grey Wolf Exploration Inc.’s historical performance and results are treated as discontinued operations as a result of the sale of Grey Wolf shares owned by Abraxas in Grey Wolf’s initial public offering that closed on February 28, 2005. Abraxas currently owns less than 1% of the outstanding capital stock of Grey Wolf.
“I am pleased to announce that in 2006 we increased production, revenue, EBITDA and cash flow over 2005 levels. Net earnings were lower in 2006 due to higher interest and depreciation, depletion and amortization (D/D/A) expenses – the higher D/D/A is a direct result of the increased drilling costs that have plagued the industry over the past year. Our preliminary budget for 2007 includes roughly 20 to 30 projects, which will focus on improving our reserve ratio through the conversion of proved undeveloped and probable / possible reserves to the proved developed category. Based on our current plans, coupled with relatively strong commodity prices, I believe we are poised to have a great 2007,” commented Bob Watson, Abraxas’ President and CEO.
Operations
In the Oates SW Field of Pecos County, Texas, a rig is currently scheduled to move this week onto the Manzanita #1H (ABP: 100% WI) to drill the horizontal lateral in the Devonian formation. The vertical portion of the well was previously cleaned out with a Company-owned workover rig.
In the Abraxas Cherry Canyon Field of Ward County Texas, the Caprito 83 #12 (ABP: 81% WI) was completed in the Bell & Cherry Canyon sands - the Bell Canyon is currently being tested. After testing is complete, the bridge plug will be pulled and the Bell Canyon will be commingled with the Cherry Canyon. The Caprito 82 #12 (ABP: 64% WI) was completed in the Cherry Canyon and a pumping unit is currently being installed on the well.
In the Brooks Draw Field of Converse & Niobrara Counties, Wyoming, we are in the process of permitting several horizontal wells to target the Mowry Shale (ABP: 100% WI); while we address various land issues on several other locations.
“We have begun the initial phase of production testing on the Caprito wells and look forward to definitive results in the near future. In Wyoming, we are very encouraged by the initial results other operators have achieved by drilling horizontally in the Mowry Shale and their stated plans of a continuous drilling program during 2007. We anticipate that our initial drilling permits will be approved by mid-summer, with drilling operations to commence soon thereafter. Lastly, we anticipate that the drilling of the lateral section on the Manzanita #1H well in the Oates SW Field will be underway by next week,” commented Bob Watson, Abraxas’ President and CEO.
Conference Call
Abraxas invites you to participate in a conference call on Tuesday, March 13, 2007, at 10:00 a.m. CT to discuss the contents of this release and respond to questions. Please dial 1.800.599.9795, passcode 35589430, 10 minutes before the scheduled start time, if you would like to participate in the call. The conference call will also be webcast live on the Internet and can be accessed directly on the Company’s website at www.abraxaspetroleum.com under the Investor Relations section. In addition to the audio webcast replay, a podcast and transcript of the conference call will be posted on the Investor Relations section of the Company’s website approximately 24 hours after the conclusion of the call, and will be accessible for at least 60 days.
Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas exploitation and production company with operations in Texas and Wyoming.
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 natural gas and crude oil. In addition, Abraxas’ future natural gas and crude oil 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.
