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Abraxas Permian Short Lateral Flows 1267 Boe/d; Pecos County Deal Terminated

By: Abraxas Petroleum Corp.

Share Print Bookmark    |    Wednesday,January 04,2017

Abraxas provided the following update to its operated areas.

Permian

In Ward County, Texas, Abraxas successfully completed the 4,963 foot effective lateral of the Caprito 99-101H with a 25 stage completion.

The results of the well significantly exceeded expectations with a 24-hour IP rate of 1,267 boepd (1,053 barrels of oil per day, 1,285 mcf of natural gas per day)⁽¹⁾ and a 30-day IP rate of 997 boepd (811 barrels of oil per day, 1,115 mcf of natural gas per day). Abraxas owns a 100% working interest in the Caprito 99-101H.

Abraxas permitted and plans to spud a two well pad in the Caprito 98-201H and Caprito 98-301H in February, 2017. The Caprito 98-301H will target the Wolfcamp A2 zone, which Abraxas targeted in the Caprito 99-101H.

The Caprito 98-201H will target an additional prospective zone in the Wolfcamp A1. Abraxas estimates it will own a working interest of approximately 90% in the Caprito 98-201H and 98-301H, respectively.

Abraxas continues to explore opportunities to expand the Company's existing position in the area and recently acquired an additional 24 net acres in the Caprito/R.O.C. area.

Williston Basin

At Abraxas' North Fork prospect, in McKenzie County, North Dakota, the Company recently spudded a four well pad in the Stenehjem 6H-9H. Abraxas recently cased the intermediate section of the Stenehjem 6H and is currently drilling the intermediate section of the Stenehjem 7H.

Abraxas working interest following the receipt of elections for the Stenehjem 6H-9H is approximately 75%. The Stenehjem 10H-15H continue to exceed expectations with two of the wells achieving cumulative oil production of over 100,000 barrels in just over four months of production.

Austin Chalk

At Abraxas' Jourdanton prospect in Atascosa County, Texas, the Bulls Eye 101H averaged 366 boepd (321 barrels of oil per day, 220 mcf of natural gas per day)⁽¹⁾ over the wells highest 30 days of production. Abraxas continues to monitor the well and available cost-effective leases in the area. Abraxas owns a 100% working interest in the Bulls Eye 101H.

Pecos County Deal Terminated

Today, Abraxas closed on the sale of the Company's Brooks Draw assets in the Powder River Basin for $11.1 million in gross proceeds. Abraxas continues to market the Company's remaining assets in the Powder River Basin.

Abraxas recently received a termination notice from the potential buyer of the Company's Hudgins Ranch property in Pecos County, Texas. Abraxas did retain 50% of the survey fees associated with the terminated sale. Abraxas is currently remarketing the property and is in discussions with several potential buyers. As a reminder, Abraxas holds approximately 13,468 acres (12,178 acres owned; 1,291 acres leased) in Pecos County, Texas.

This property is approximately five miles to the east of the most southeasterly portion of another operator's recent discovery known as "Alpine High." Abraxas currently has the surface ownership and a of the Company's current mineral ownership listed with a broker for $550/acre.

Abraxas plans to retain the remaining of the Company's current mineral interests and executive rights over the leasehold. Abraxas also holds 3-D seismic, numerous logs and vertical production from the Barnett/Woodford on the leasehold.