Message #28 From:
NewsBot Date: November 6, 2006 06:00:00 AM
ABP News Abraxas Reports Third Quarter 2006 Results With Six Consecutive Quarters of Production Growth Including a 25% Increase in Daily Production Over Third Quarter 2005
SAN ANTONIO--(BUSINESS WIRE)--Abraxas Petroleum Corporation (AMEX:ABP) today reported financial and
operating results for the quarter and nine months ended September 30,
2006 and provided an operational update.
Daily production from the third quarter of 2006 increased 3% over the
second quarter of 2006 marking six consecutive quarters of production
growth.
Results for the quarter ended September 30, 2006 included:
Production of 2.0 Bcfe, a 25% increase over Q3 2005;
Realized gas price of $5.43, a 33% decrease from Q3 2005 realized
price of $8.15;
Revenue of $13.2 million, a 7% decrease from Q3 2005;
EBITDA (a) of $9.3 million, an 8% decrease
from Q3 2005; and
Cash flow (a) of $4.8 million, a 23% decrease
from Q3 2005.
Results for the nine months ended September 30, 2006 included:
Production of 5.8 Bcfe, a 36% increase over the same nine-month period
of 2005;
Revenue of $39.8 million, a 26% increase over the same nine-month
period of 2005;
EBITDA (a) of $27.9 million, a 38% increase
over the same nine-month period of 2005; and
Cash flow (a) of $15.4 million, a 53%
increase over the same nine-month period of 2005.
(a) see reconciliation of non-GAAP financial
measures below.
Net earnings in the third quarter of 2006 were $589,000, or $0.01 per
share, compared to net earnings in the same quarter of 2005 of $3.8
million, or $0.09 per share, from continuing operations. Net earnings
for the nine months ended September 30, 2006 were $2.8 million, or $0.07
per share, as compared to net earnings during the same nine-month period
of 2005 of $2.8 million, or $0.07 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 we continue to
deliver our shareholders quarter over quarter production growth. We have
achieved a 29% CAGR (compounded annual growth rate) since the first
quarter of 2005. All of the production increases have been achieved
exclusively through the drill bit, as we continue to explore and exploit
the many opportunities that we have identified on our existing
leasehold. Looking forward to 2007, we are currently in the process of
preparing our capital expenditure budget and plan to announce the same
in conjunction with our 2007 production and cost guidance before the end
of November,” commented Bob Watson, Abraxas’
President and CEO.
Operations
In the Oates SW Field of West Texas:
The La Escalera #5-1, a Lower Wolfcamp test, is scheduled to be
fracture stimulated during the 4th quarter;
The Hudgins #37-1H, a horizontal Devonian re-entry, has been placed on
gas lift to further evaluate its natural productive capabilities; and
The Manzanita State #1H, a horizontal Devonian re-entry, has been
cleaned out and the lateral is currently scheduled to begin drilling
in early 2007.
Abraxas owns a 100% working interest in all of the above-mentioned wells.
Conference Call
Abraxas invites you to participate in a conference call on Monday,
November 6th, at 2:00 p.m. CT to discuss the contents of this release
and respond to questions. Please dial 1-800-510-9691, passcode 34022891,
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.
