Message #29 From:
NewsBot Date: November 20, 2006 07:20:00 AM
ABP News Abraxas Announces Preliminary 2007 Capital Expenditure Budget
SAN ANTONIO--(BUSINESS WIRE)--Abraxas Petroleum Corporation (AMEX:ABP) today announced a preliminary
2007 capital expenditure budget of $27 to 44 million.
The preliminary budget includes roughly 20 to 30 projects, which will be
selected from the Company’s expansive
inventory of projects on its existing leasehold and may include the
following – the listed projects are subject to
change based on rig availability and drilling results:
West Texas
Devonian horizontal re-entry (14,000’) in
the Oates SW Field of Pecos County;
Woodford Shale horizontal re-entry (13,500’)
in the Oates SW Field of Pecos County;
Cherry/Bell Canyon (7,000’) in-fill drilling
in Ward County;
Spraberry (9,000’) in-fill drilling in
Midland County;
Clearfork (3,500’) in-fill drilling in
Mitchell and Scurry Counties; and
Strawn Reef (6,000’) in-fill drilling in
Coke County.
South Texas
Several exploratory wells (9,000’–12,000’)
targeting the Wilcox on internally generated prospects in Bee and
Karnes Counties.
Wyoming
Mowry horizontal well (8,500’) in the
Brooks Draw Field of Converse and Niobrara Counties.
The ultimate capital expenditures will depend on a number of factors,
including but not limited to commodity prices, rig availability, service
costs, and general market conditions.
The Company plans to issue guidance for 2007 after necessary drilling
contracts have been secured and consequently, has a better handle on the
timing of certain projects.
“Our 2007 budget was partly designed to
improve our reserve ratio through the conversion of proved undeveloped
reserves (PUD), as well as probable / possible reserves, to the category
of proved developed reserves (PD). Our goal is to increase the ratio of
proved developed reserves to total proved reserves by at least 10%; we
feel that such an improvement in our PD ratio would greatly benefit
Abraxas in the public markets and consequently, benefit all of our
shareholders. At present, approximately 50% of our budget consists of
PUD projects while another 20% represent probable and possible projects.
We will begin the year by keeping our company-owned workover rigs busy
on several re-entry / re-completion projects in West Texas, while we
secure larger drilling rigs for grass roots and deeper projects,”
commented Bob Watson, President and CEO.
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.
