Abraxas Petroleum Operations Update Reveals Strong Initial Production (IP) Rate for McMullen County Well

April 9, 2014 Kirk Eggleston

San Antonio-based Abraxas Petroleum Corp. had good initial production on one of its' Cave Prospect wells, located in McMullen County, in the first-quarter of the year. In its' first 30-days, the Dutch 2H had average production of 1,093 boe/d.

According to company officials, Abraxas will shut-in the well for 60-days to drill an off-set well, when drilling is completed on its' Eagle Eyes 1H well, located in the company's Jourdanton prospect, in Atascosa County.

“The productivity of the Dutch 2H meaningfully surpassed our expectations, and we recently elected to drill the Dutch 1H to minimize operational impacts and fully develop the two well pad. We will still have another pad in inventory to drill at our Cave Prospect, the Dutch 3H and Dutch 4H. ”

— Bob Watson, President and CEO of Abraxas

Jourdanton Prospect (Atascosa County, TX)

Abraxas has a 100% working interest (WI) across its' Jourdanton Prospect. Here is a brief overview of the company's current operations in the area:

Blue Eyes 1H - 527 boe/d (30-day), 466 boe/d (60-day), 460 boe/d (90-day)
Snake Eyes IH - Completed; Well is flowing to sales
Spanish Eyes IH - Drilled to total depth of 12,346 feet and scheduled for fracking
Eagle Eyes 1H - Drilled to 7,182 feet so far; This is the company's fourth Jourdanton Prospect well

Cave Prospect (McMullen County, TX)

Abraxas has a 100% working interest (WI) in its Dutch 2H well in the Cave Prospect. Here is a brief overview of the company's current operations in the area:

Dutch 2H - 1,093 boe/d (30-day)
Dutch 1H off-set well to Dutch 2H will be drilled when Eagle Eyes 1H drilling has finished
60-Day shut-in of Dutch 2H will commence with the drilling of the Dutch IH well

Dilworth East Prospect (McMullen County, TX)

Abraxas has a 100% working interest (WI) in its R. Henry 2H well in the Dilworth East Prospect. The company plans to complete the R. Henry 2H in May when gas takeaway is available at the lease.

Abraxas is also active in the Bakken, with operations focused in McKenzie County. The company is currently doing its' first downspacing tests in the Middle Bakken.

Abraxas Petroleum Sells Eagle Ford Acreage in McMullen County to Redman Resources - $73 Million

December 9, 2013 R.T. Dukes

Abraxas Eagle Ford Map - Pre WyCross Sale

Abraxas Petroleum is selling Eagle Ford acreage and production in the company's WyCross area in McMullen County for $73 million.

The deal includes ~1,200 net acres from a 25% working interest in 5,986 gross (4,809.5 net) acres and net production of 655 boe/d (~90% oil). Proved reserves on the property were estimated at 3.7 million boe.

Abraxas retained ~4,000 net acres near Jourdanton in Atascosa County and ~400 net acres in the Cave area in McMullen County. Abraxas recently completed its second well on its Jourdanton area acreage and is in the process of drilling its first well in the Cave area in McMullen County.

“...Although the WyCross properties were certainly of the highest quality, they carried a low working interest and are now non-operated. We continue to identify additional lease blocks available in our targeted regions of the Eagle Ford and expect to be in a position to announce additional Eagle Ford acreage acquisitions in the near future.”

— Bob Watson, CEO

Abraxas Petroleum WyCross Eagle Ford Acreage Map - McMullen County

Mr. Watson also stated the company will focus on its high quality, operated assets. Abraxas was not the operator on the WyCross acreage and held a minority (25% WI) interest in the development.

Abraxas is expected to use the proceeds to pay down the company’s bank line and redeploy capital into operated lease blocks in the Eagle Ford and Bakken.

Read the full press release at abraxaspetroleum.com

Abraxas Petroleum Selling Eagle Ford Acreage for $20 Million

November 13, 2012 R.T. Dukes

Abraxas Petroleum has reached an agreement with an institutional buyer to sell 544 net acres in the Nordheim area for $20 million. The acreage is located in the wet gas and condensate window of the Eagle Ford in DeWitt County. The asset is producing 64 boe/d, with more than half attributable to natural gas and the other half split between NGLs and oil. Abraxas is also reserving rights to the Edwards formation and will not lose potential upside from other developments.

Abraxas also recently agreed to sell an overriding royalty interest in the Alberta Basin Bakken for almost $3 million. I suspect the money will be used to expand development in the company's core areas of the Bakken Shale, Eagle Ford Shale, and Permian Basin. As of 2012, about half of the company's capital budget was allocated to the Bakken.

In the Eagle Ford, Abraxas is expected to continue its focus in the WyoCross Area in McMullen County, where the company has 6,139 gross (999 net) acres. At 80-acre well spacing, the company has 77 gross (19 net) drilling locations. The first well completed in the area, the Cobra 1H, produced over 120,000 boe (95% oil and NGLs) in the first seven months of production.

Abraxas Petroleum Eagle Ford Well Results - September

September 26, 2011 Kenny DuBose

Abraxas Petroleum provided an operations update on the Eagle Ford. The company's first well in DeWitt County produced more almost 260,000 barrels equivalent in the first seven months and is currently producing 800 barrels of oil equivalent per day. A Talisman operated well, in which the company has an interest, came online in mid-August producing 1,500 barrels of oil equivalent per day after the companies completed a 14 stage frac stimulation. Abraxas is completing a horizontal well with 18 frack stages in Atascosa County and plans to drill two wells in McMullen County before year end. Abraxas has over 12,000 net acres that stretch across Atascosa, DeWitt, Lavaca, and McMullen counties. The company reports having as many as 75 net drilling locations on 160-acre spacing.

Abraxas currently owns a 41% equity interest in Blue Eagle, a joint venture between Abraxas and Rock Oil Company, LLC.
In DeWitt County, Texas, Blue Eagle's first well, the T-Bird 1H, continues to outperform expectations and is currently producing 800 barrels of oil equivalent per day, 50% of which is condensate or natural gas liquids. The well has produced approximately 260,000 barrels of oil equivalent during its first seven months on production. Blue Eagle owns a 100% working interest in this well.
In DeWitt County, Texas, Blue Eagle participated in a non-operated horizontal well with its 43.9% working interest. The Matejek Gas Unit 1 was drilled to a total measured depth of 17,865 feet, including a 3,600 foot lateral, and completed with a 14-stage fracture stimulation. The well was placed on production in mid-August and is currently producing approximately 1,500 barrels of oil equivalent per day on a 10/64-inch choke, 45% of which is estimated to be condensate or natural gas liquids.
In Atascosa County, Texas, the Grass Farms 1H was drilled to a total measured depth of 13,150 feet, including a 5,400 foot lateral, and completion operations are underway with nine of the planned 18-stages complete. Blue Eagle owns a 100% working interest in this well.
Blue Eagle anticipates drilling two horizontal wells on its recently acquired leasehold (2,487 net acres) in McMullen County, Texas in the fourth quarter.