Abraxas Provides Operations, Production and Guidance Update; Announces Upcoming Presentation

SAN ANTONIO--(BUSINESS WIRE)--

Abraxas Petroleum Corporation AXAS is pleased to provide the following operations, production and guidance update; announces upcoming presentation.

Eagle Ford

At Abraxas' Jourdanton prospect in Atascosa County, Texas, the Snake Eyes 1H averaged 531 boepd (493 barrels of oil per day, 232 mcf of natural gas per day) ⁽¹⁾ over the well's first 23 full days of production flowing naturally. After loading up after 23 days, the well was placed on sub-pump. Since being placed on sub-pump, the well produced 729 boepd (703 barrels of oil per day, 158 mcf of natural gas per day) ⁽¹⁾ in its first full production day. Abraxas recently completed the Spanish Eyes 1H with a 19 stage completion. The well has been flowing to sales for approximately 19 days and is expected to be placed on sub-pump this week. Abraxas also recently completed the Eagle Eyes 1H with an 18 stage completion and the well just began flowback. Abraxas owns a 100% working interest across the Jourdanton prospect. Total acreage at Jourdanton now consists of approximately 7,142 net acres.

At Abraxas' Cave prospect, in McMullen County, Texas, the company shut in the Dutch 2H on April 14 to begin drilling operations on the Dutch 1H. The Dutch 1H is currently drilling at 16,583 feet and is expected to be fracture stimulated and turned to sales in mid-June. Abraxas holds a 100% working interest in the Dutch 1H and 2H.

At Abraxas' Dilworth East prospect, in McMullen County, Texas the company plans to complete the R. Henry 2H with a 19 stage fracture stimulation in late May. The well is currently anticipated to be turned over to sales in early June when gas takeaway is available at the lease. Abraxas holds a 100% working interest in the R. Henry 2H.

Williston Basin

In McKenzie County, North Dakota, the Jore 1H, 2H and 4H are currently being fracture stimulated. On the Ravin West pad, Abraxas recently reached TD on the lateral of the Ravin 4H at 20,754 feet. After casing the lateral on the Ravin 4H, the company will drill the laterals of the Ravin 5H, Ravin 6H and Ravin 7H. Abraxas owns a working interest of approximately 76% and 51% in the Jore and Ravin West pads, respectively.

First Quarter 2014 Production

Production for the first quarter of 2014 averaged approximately 4,189 boepd (2,580 barrels of oil per day, 7,181 mcf of natural gas per day, 412 barrels of NGLs per day).

Guidance Update

Abraxas is providing the following guidance for the second quarter of 2014.

			2Q14E
			Low		High
Production
Total (Boepd)			4,600		4,750
% Oil			65%
% NGL			7%
% Natural Gas			28%
Operating Costs
LOE ($/Boe)			$14.00		$15.00
Production Tax (% Rev)			9.0%		9.5%
Cash G&A ($mm) (2)			$2.3		$2.5
CAPEX ($mm)			$51.5		$55.0

(2) Does not include stock based compensation.

Upcoming Presentation

Bob Watson, President and CEO of Abraxas, will be presenting at Baird 2014 Growth Stock Conference in Chicago at 2:00 PM CT on Wednesday, May 7, 2014.

Bob Watson, President and CEO of Abraxas, commented, “Operations continue to run quite smoothly at Abraxas as evidenced by our production beat in the first quarter of 2014. Our Eagle Ford program continues to positively surprise us, most recently with the Snake Eyes 1H. We look forward to updating the market with the results of our recent Bakken and Eagle Ford completions in the near future.”

(1) The production rates for each well do not include the impact of natural gas liquids and shrinkage at the processing plant and include flared gas.

Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas exploration and production company with operations across the Rocky Mountain, Permian Basin and onshore Gulf Coast regions of the United States and in the province of Alberta, Canada.

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 crude oil and natural gas. In addition, Abraxas' future crude oil and natural gas 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.